not to cut you off but to get to the point, it is access to credit. the available -- the availability of credit and the access to it. the availability of credit is one thing. the financial when institutions lose their rears, when institutions fail or have to be bailed out by the government for bad decisions they have made, that constricts credit for everyday consumers, yes. absolutely. as a part of that, that is the availability of credit becomes constrained. access to credit can be constrained as a result to -- of less availability of credit. that can be a decision made by

businesses or banks. it can be a result of government regulation. that is our discussion. that is our intention today, to get to the heart of that. what i would like to address, i would encourage you to look at access to credit and to mention this in terms of your rules- making. as i see it, there is an opportunity to over regulate and thereby constrain access to credit. >> i see. >> maybe not explicitly banning products, but not having the results of products offered. that is my concern i would like to express to you. i would appreciate it if you would take that into account. i think the american people would appreciate it as well. >> i understand your point now and i did not before.

we do, that is one of the things we consider in the cost-benefit analysis. that is one of the -- there is only a handful of specific mandates we have. the objectives laid out by congress, one of them is to give careful consideration to access to credit. my understanding of how this makes sense is, it is great to protect consumers with all the elaborate protection you can think of. they have to have access to credit and credit needs to be presented in terms that are understandable and clear. i do think we are uniformly, as we consider rules, having a discussion of that and an analysis of that. i appreciate the kind that -- a comment. -- the comments.

>> thank you. i appreciate the responsiveness you have presented in your time as director of the cfpb. as i have expressed, the means of your important -- appointment i have found suspect, but you're aspect serving in this position have been honorable, even if i disagree with the actions you take and at times. you have done so in an honorable fashion and we can disagree about policies, procedures, and even sometimes results. but i appreciate your willingness to be open about that. that is a welcome thing. thank you for your willingness to be here today. >> thank you. >> thank you. we will now dismiss this panel. we will recess for about a moment or two before we began

our second panel. -- began our second panel -- begin our second panel. >> wednesday, u.s. relations with the mexican president will be discussed. republican of new jersey talks about the fight over tax cuts and defense cut frustration. calls will be taken about an article highlighting entitlement gaps between the generations. washington journal is life on c- span. >> wednesday, kim died there is before the house service -- house financial-services committee.

on c-coverage starting a span 3. >> even disagree vehemently on the law, without taking it personally and without hating the person who is on the other side. you ought to find another job. >> sunday at 8:00 on c- span's "q & a." >> ron paul has introduced a measure to have an audit of the federal reserve. the bill could jeopardize the federal reserve's independence. the bill was debated today for 50 minutes. the gentleman is recognized. mr. issa: thank you, mr. speaker. h.r. 459, the federal reserve

transparency act, directs the g.a.o. to conduct a full audit of the federal reserve. the dodd-frank legislation mandated the g.a.o. audit of the fed, but that audit issued by the government accountability office in july of 2011, focused solely on the issues concerning emergency credit facility. g.a.o. remains restricted under current law from conducting a broader audit of the fed that includes, for instance, a review of the fed's monetary policy operations and its agreements with foreign governments and central banks. the bill remedies this statutory permitting g.a.o. -- permitting g.a.o. the investigative arm of congress to conduct a nonpartisan audit that will review all of these transactions. the findings of the audit are to be reported to congress. in particular, it is appropriate that we consider this legislation at this time.

while congress should not manage or micromanage details of monetary policy, it needs to be able to conduct oversight of the fed. the fed was created by congress to be the central bank, independent of the influence of the u.s. treasury. it has never and was never intended to in fact be independent of congress or independent of the american people. in recent years the fed's extraordinary interventions into the economy's fiscal market has led some to call into question its independence. we do not ask for an audit for that reason. we ask for an audit because the american people ultimately must be able to hold the fed accountable and to do so they must know at least in retrospect what the fed has done over these many years that it has been without an audit. that is why i support h.r. 459, a bipartisan bill with mine and 273 other co-sponsors.

i urge my colleagues to support it and i reserve the balance of my time. the speaker pro tempore: the gentleman reserves the balance of his time. members are reminded not to traffic the well while another member is under recognition. the gentleman from maryland. mr. cummings: mr. speaker, i yield to the gentleman from maryland, mr. hoyer, two minutes. mr. hoyer: i thank the gentleman for yielding. the speaker pro tempore: the gentleman is recognized for two minutes. mr. hoyer: mr. speaker, when the sponsor of the bill talk about auditing the federal reserve, they don't mean a traditional audit. an outside independent accounting firm already audits the federal reserve's annual statements and g.a.o. is already empowered to review the annual statements and a broad range of its functions. in fact, the wall street reform legislation passed last congress, there is transparency and accountability when it comes to the federal reserve's finances and operations.

however, this bill would instead jeopardize the fed's independence by subjecting its decisions on interest rates and monetary policy to g.a.o. audit. the fed, like every other major central bank in the world, is independent, and congress has rightly insulated the fed from short-term political pressures. i agree with chairman bernanke that congressional review of the fed's monetary policy decisions would be a, quote, nightmarish scenario, especially judging the track record of intervening in the courts and other areas. we don't have to look further than the congress unnecessarily taking the country to the brink of default last summer in a display of politics. all of us, mr. speaker, want transparency. all of us here want to make sure that the federal reserve is working to carry out the economic goals of the american people, which are maximum employment and price stability,

but that's not what this bill is about. this bill increases the likelihood that the fed will make decisions based on political rather than economic considerations, and that is not a recipe for sound monetary policy. i urge my colleagues to defeat this bill and preserve the independence of the fed so it can keep our currency stable and cultivate the best conditions for our economy to grow and create jobs. unfortunately, mr. speaker, we in congress have shown too frequently our inability in a political environment to make tough choices. that failure has led us in part to where we are today. i urge my colleagues to defeat this unwarranted, unjustified and dangerous legislation. and i yield back the balance of my time. the speaker pro tempore: the gentleman from california. mr. issa: mr. speaker, it's now my honor to yield time to the author of this bill, the gentleman from texas, the man who understands that not knowing should never be an answer, mr.

paul. the speaker pro tempore: the gentleman from texas is recognized. mr. issa: two minutes. the speaker pro tempore: for two minutes. mr. paul: i thank the gentleman for yielding. i rise obviously in strong support of this legislation. i don't know how anybody could be against transparency and they want secrecy, especially when the secrecy is to protect individuals who deal in trillions of dollars, much bigger than what the congress does, and these trillions of dollars bail out all the wealthy , rich people, the banks and the big corporations, international, overseas banks, bailing out europe, dealing with central banks around europe, around europe, and different places. and so say that we should have secrecy and say that it's political to have transparency, well, it's very political when you have a federal reserve that can bail out one company and not another company. that's pretty political. i know when people talk about independence and having this privacy of the central bank, it

means they want secrecy and secrecy is not good. we should have privacy for the individual, but we should have openness of government all the time. and we drifted a long way from that. the billie essentially removes the -- the bill essentially removes the prohibition against a full audit. to audit we should know what kind of transactions are we should know about the deals that they made -- are. we should know about the deals they made when they were fixing the price of libor. these are the kind of things that were going on for years and we have no access to. so congress has this responsibility. we are reneging on our responsibility, we have the responsibility and we have not done it. so it is up to us to reassert ourselves. the constitution's very clear who has the responsibility. but the law conflicts with the constitution. the law comes along and says the congress can't do it. well, you can't change the constitution, prohibit the congress from finding out what's

going on by writing a law. and this is what has happened. so it is time that we repeal this prohibition against a full audit of the federal reserve. we deserve it. the american people deserve it. the american people know about it and understand it and that's what they're asking for. they're sick and tired of what happened in the bailout and where the wealthy got bailed out and the poor lost their jobs and they lost their homes. and i yield back. the speaker pro tempore: the gentleman from maryland. mr. cummings: i yield four minutes to the distinguished ranking member of the financial services committee, mr. frank. the speaker pro tempore: the gentleman from massachusetts is recognized for four minutes. mr. frank: thank you, mr. speaker. i think this is a bad idea and i'm somewhat confused. by the way, we will be debating tomorrow a bill which restricts rule making and exempts the federal reserve as i read it. so we're kind of on again, off again about the federal reserve. it seems to me what we're talking about is taking some thick punches at the federal

reserve but not doing anything serious. my republican colleagues brought up a reconciliation bill that was going to subject the consumer bureau to appropriations. so i offered an amendment to subject the federal reserve to appropriations. that was voted down. so we're not going to restrict their rulemaking, we're not going to subject them to appropriations, even though that's being done elsewhere, we're going to audit them. which is a way to look tough without reallyeing tough. does the gentleman want me to yield? mr. paul: i would. mr. frank: i yield. mr. issa: i thank the gentleman. would you suggest that we should do both of those -- mr. frank: no. i will take back my time and say we should do none of them. i have a consistent position. i don't think we should do any of them. what i'm saying is people who get up there and beat their chest about how tough they are and they're not afraid of the federal reserve, but it exempt it from the great rule making bill and subject the consumer bureau, that terrible threat to the well-being of americans through the appropriations process, but let the federal reserve, which spends about $1 -- 150 times as much go free, i

am inclined to doubt their seriousness. not their purity. that would be a violation of the rules. but their seriousness. this is a way to shake your fist at that big bad fed and it's not a good way. we hear a lot about uncertainty. remember, the federal reserve is now subject to a complete openness about all of its transactions with private companies. we did that last year. the gentleman from texas had a major role in that. when the federal reserve deals with any other institution we know what it does. we don't know it necessarily the same day. there were predictions about what terrible things were going to happen when the federal reserve did this and that and they haven't come true. maybe they will someday. but we will know it. this makes this exception, it says that we will audit the decisions about monetary policy. it says that members who vote on what the interest rates should be will now be audited. they will be subject to being quized about why they did that. now, i will tell my democrat

friends, i understand that one part of this problem is the objection on the part of the republican party to the fact that our federal reserve, unusual among central banks, has a dual mandate. they are charged under a statute to be concerned about inflation and about unemployment. now, the republicans have an agenda that, they keep it on low keep keystone x.l. until next year, but they would -- keep it on low key until next year, but they would like to strip that part of the mandate. they would like the federal reserve to be only involved with inflation. they don't like that they deal with unemployment. this is a way, if it ever were to become law, no one thinks it is. look how tough we are, we're going to wave our fist at the fed. but it would be way to kind of put pressure on members of the open market committee and see what -- are you worried about unemployment when you did this? that's the audit. in this has nothing to do with how they spend their money. it has nothing to do with whom they contract. that's what people usually think about audit.

it has nothing to do with the way in which -- whether they're efficient or not. it's an ideological agenda by a group of people who didn't like what the federal reserve was doing, under by the way george bush, there was reference to the bailouts which of course were under the bush administration. one of the things we did in the bill two years ago, all my republican colleagues voted against the bill, was to take away from the federal reserve the power they used under president bush to give -- lend $85 billion to a.i.g. we rescinded that. i don't think mr. bernanke, a bush appointee, was doing the wrong thing necessarily. but we took back that power. so this is probably a show because on the two serious efforts to curtail the fed's powers, my republican colleagues aren't there. but secondly, and as i said, i'm consistent, i don't think we should do any of these things. i think what we did with regard to openness makes sense. i'm not pretending to be tough when i'm not. the speaker pro tempore: the gentleman is recognized for an additional minute.

mr. frank: but what it will do is destabilize. we have worries about expectations. there is a fear that we will be too inflationary or that we won't grow enough. people on wall street are not as sophisticated as some people think. they're not even sophisticated about their own business, as we know. they will read this and take it more seriously than the members here do. and it will destabilize some of the financial system. they will see it as political interference, not with the contracting procedures, not with the budget, not with how many cards they have, but with how they decide on interest rates. and the perception that the congress is going to politicize the way in which interest rates are set will in itself have a destabilizing effect. and as i said, nobody here thinks this is ever going to become law. but there is this fear on the part of others who don't know that that will translate into precisely the kind of

uncertainty, precisely the kind of unsettling on investment that my republican colleagues pretend to fear and it will also send them the message, stop worrying about unemployment. the speaker pro tempore: the gentleman's time has expired. the gentleman from california. mr. issa: as i introduce my good friend and leader on this issue, mr. chaffetz, i might note that when the word republican and democrat are used in this hall, hopefully when there's 45 democratic members on this bill as co-sponsors, we'd recognize this is a bipartisan bill. i now yield two minutes to the gentleman from utah. the speaker pro tempore: the gentleman from utah is recognized for two minutes. mr. chaffetz: thank you. and i thank the chairman. i also want to appreciate and congratulate dr. ron paul for his tireless pursuit of this openness and transparency. without his leadership we wouldn't be at this point today. and i applaud him and thank him for that. some would say that the fed is already audited but there are some key points where it is not. these include transactions with foreign central banks, discussion and actions on monetary policy, and transactions made under the

direction of the federal open market committee. if we're truly about openness and transparency in this nation, which dishes -- distinguishes above and beyond so many others, we deserve and need to know this information. we need also understand the imperative that is before us because the freshman reserve balance sheet has exploded in recent years. since 2008 it has literally tripled. gone from $908 billion on its balance sheet to over $2.8 trillion. nearly a 33% annualized increase since january of 2008. the federal reserve ownership of treasuries has also increased substantially in recent years. having more than doubled from january of 2008 to january of 2012. where it went from $741 billion to $1.66 trillion. let's understand also that in fiscal year 2011 the federal reserve purchased 76% of new treasuries. certainly this distribute american people and this congress deserves more openness,

transparency and at the very least an audit. i encourage my colleagues on both sides of the aisle to support this commonsense piece of legislation and again congratulate dr. paul on continued hope for his pursuit of this issue. i yield back. the speaker pro tempore: the gentleman from maryland. mr. cummings: i yield mrs. maloney two minutes. the speaker pro tempore: the gentlelady from new york is recognized for two minutes. mrs. maloney: this is an absolute terrible idea. although i am in total agreement with mr. paul that transparency is a virtue, i also believe that the federal reserve must be free of any political influence. and i'm afraid that this bill opens the door for precisely that to happen. and i don't believe that there's any one -- anyone in this chamber that thinks that what the process needs is more politics. make no mistake, i agrie degree that maximum transparency is necessary and desirable and that is precisely why we included numerous transparency requirements in the financial reform bill as well as numerous audit requirements. we authorized the g.a.o. to

audit the fed's emergency lending facility. we authorized the g.a.o. to ought audit any special facility created within the fed. and we required the fed to issue an assessment two years after institutions were granted access to the fed's discount window. we crafted those measures and more in a way that ensures transparency, but still preserves the independence of the federal reserve in its decision making process, in the critical area of monetary policy. but this bill, as it now stands, would provide information without a proper context. and that could have unintended consequences and have totally unwarranted effects on consumer confidence in our financial institutions. if the individual numbers of the open markets committee know that each one of their decisions are subject to potential political pressure, it would significantly alter that decision making process. an open door to the federal open markets committee would invite political pressures and having

decisions that are driven by politician and polling data is not -- politics and polling data is not the path to sound monetary policy. decisions about monetary policy should never be based on the raw political needs of the moment but instead should always be based strictly on objective economic contributions and guided by the twin mandates of full employment. the unintended consequences of this bill would be to open the federal reserve to political influence and that would have a negative impact on the fed's independence and its ability to produce sound economic policy. i urge a strong bipartisan no vote. i yield back. the speaker pro tempore: the gentleman from california. mr. issa: it's now my honor to yield one minute to the gentleman from texas, mr. farenthold. the speaker pro tempore: the gentleman from texas is recognized for one minute. mr. farenthold: thank you, mr. chairman. you know, the constitution grants us the power to coin money and regulate the value

thereof and we've delegated this to the fed. unfortunately we've ta tied our hands behind our back with respect to seeing what they're doing and it's our duty to conduct oversight. a moment ago mr. frank said the audit was just fist pounding and chest pounding. i disagree. it's the first step, it's us doing our homework to determine what needs to be done to reform the fed. chairman bernanke said this bill would be a nightmare scenario of political meddling in monetary affairs. i disagree. i think the current situation is a nightmare scenario in unaccountable government. as justice bran dies said, sunshine is always the best disinfectant. as a member of the oversight and government reform committee, we demand transparency from agencies like the g.s.a., the t.s.a., and other fed agencies. i join my friend and neighbor in congress, dr. paul, in demanding for the american people that sunshine be shined into the fed and this audit be conducted. i urge my colleagues to support this bill because the american people have a right to know.

the speaker pro tempore: the gentleman from maryland. mr. cummings: i grant the gentleman from massachusetts, one minute, mr. frank. the speaker pro tempore: the gentleman from massachusetts is recognized for one minute. mr. frank: to illustrate the misconceptions about this bill, let's refer to what the gentleman from utah, mr. chaffetz, had to say. he said 76% of the purchases of this and that -- well, if this was so nontransparent, i don't know how he knows that. he doesn't have a subpoena. but the fact is, yes, he knows that, because of the transparency we built in. but the more important, the details, the specifics of every one of those transactions is already public. this isn't about those transactions and with about whom were done and under what time period. it's about the motives of the people setting monetary policy. let me address the constitution. yes, it is true that the constitution gives us the power to do this. the constitution gives us a lot of power. it gives us power to declare war on canada. it declares -- gives us the power to do a lot of things. wise people pick and choose which powers they use, but this

is not about getting more information about their transactions or that is out there. this is an effort to give politicses, a wonderful group of people of which i am one, more direct involvement on the setting of interest rates than is good for the economy. the speaker pro tempore: the gentleman from california. mr. issa: it's now my honor to recognize for one minute the gentleman from michigan, mr. amash. the speaker pro tempore: the gentleman from michigan is recognized for one minute. mr. amash: i want to thank chairman issa and congratulate dr. ron paul for his tireless work on this issue for many decades. mr. speaker, what is the federal reserve? i think even many members of this body couldn't answer that question, and yet congress has delegated its constitutional authority to this committee of bankers and presidential appointees. congress has given so much power while knowing so little. the central bank, we trust the

federal reserve for managing inflation. that means the fed can change the value of americans' life savings, their mortgages. lately the fed has taken on the role of, quote, lender of last resort. it has promised billions of dollars to the country's largest financial institutions. when investors wouldn't buy mortgages, the fed did. when creditors became worry of congress' spending bin g, the fed stepped in. -- binge, the fed stepped it. the government's accountants understandably were outraged saying they couldn't, quote, satisfactorily audit the federal reserve system without the authority of examining the fed's largest assets. congress should be weary of all types of central planning. we should be especially vigilant against unaccountable groups that profoundly affect americans' lives and liberty. pass this bill and let's audit the fed. i yield back. the speaker pro tempore: the gentleman from mudd. mr. cummings: i yield the gentleman from north carolina, mr. watt, two minutes.

the speaker pro tempore: the gentleman from north carolina is recognized for two minutes. mr. watt: thank you, mr. chairman, and let me say, first, that this bill is not about sunshine. it's not about transparency. it is about dissatisfaction that some individuals have with the man indicate that congress has given -- mandate that congress has given to the federal reserve. the gentleman who just spoke is absolutely right. they're supposed to deal with inflation. that's what we told them to do in their mandate. they're supposed to deal with unemployment. that's what we told them to do in the mandate we gave them. and some people over there are dissatisfied with the fact that they don't want them to deal with unemployment. they don't want them to try to adjust and make changes that will be beneficial to our

economy. and if they don't want that, they ought to just introduce a bill that repeals the mandate that we gave to them. don't come and say we're talking about sunshine and transparency. every time i turn on the television now i hear the federal reserve, chairman bernanke, and members of the federal reserve talking about how the economy is going. that is not lack of sunshine and lack of information. we -- i thought we had dealt with this when i was the ranking member of the subcommittee and mr. paul was the chairman -- or i was the chairman and he was the ranking member. mr. paul's problem is he doesn't like the federal reserve. he's in favor of doing away with the federal reserve. and if -- and that's an honest position, but don't come in and try to cloak it in the guise of

this agency is not transparent or it lacks sunshine. if you don't like the mandate that they have, then have the guts to stand up and introduce a bill that says we're doing away with the federal reserve and -- mr. cummings: i yield the gentleman one minute. the speaker pro tempore: the gentleman is recognized for one minute. mr. watt: if you think we're in trouble now, you get the politics and the congress involved in transactions with foreign governments and decisions about how we get ourselves out of this unemployment situation. if we have some answers about how to get out of unemployment, i would assume we would come forward with them and nobody on this floor, this congress has done nothing to take out the ploun -- unemployment bill, so

i'm glad we have the federal reserve over there at least trying to figuring out how to make some adjustments in our economy that will deal with unemployment. and the last thing i want is for this congress to be second guessing or an auditor that is not elected by anybody to be second guessing the decisions of the people who are on the federal reserve. an auditor might be a good accountant. he can count, but i want somebody on the federal reserve and hopefully it would be nice to have some people in congress who can make some decisions about how to deal with unemployment. the speaker pro tempore: the gentleman's time has expired. the gentleman from california. mr. issa: mr. speaker, the rules of the house prohibits going after someone's motivation and i'm very concerned that a bill that in a substantially similar form was placed into dodd-frank by then

chairman barney frank is now being characterized as somehow ill-intended and mischievous activity by the proponents. i would trust that's not the intent of the speakers on behalf of that side of the aisle about this bipartisan bill that is virtually identical to the language that barney frank put into dodd-frank. i'd yield. mr. watt: i just want to be clear that mr. frank and i voted against the bill that you are talking about. so don't try to make it sound like me and mr. frank's bill. we voted against the bill. this is ron paul's bill, and we thought it was a terrible idea then and we -- mr. issa: reclaiming my time. mr. watt: thinks it's terrible now. mr. issa: i yield 15 seconds to the gentleman from texas. mr. paul: did you vote against dodd-frank? because it was in dodd-frank. it wasn't a separate bill. maybe on a separate vote you might have but it was in

dodd-frank. mr. issa: i now recognize the gentleman from montana for one minute. the speaker pro tempore: the gentleman from montana is recognized for one minute. mr. rehberg: tomorrow the house of representatives will vote to pull back the secretive curtain of the federal reserve. the american people have a right to know. it's an important step in openness in government transparency that's long overdue. just a few years ago the senate rejected an effort to add the strong audit language to the dodd-frank bill, but times are changing. our economy struggles and job creation lags. it's more important than ever to look under the hood of the federal reserve. we need to find out exactly what they are doing and why. that way we can determine if the fed is actually hurting our economy and discouraging job growth. in a drauks, no government body -- democracy, in government body should be allowed to hide behind a curtain of secrecy. that's why i stand behind this

legislation. thank you, i yield back. the speaker pro tempore: pursuant to the chair's announcement of earlier today, the chair will observe a moment of silent. will all present please rise in onans of a moment of silence. -- in observance of a moment of silence. the speaker pro tempore: without objection, debate continues on h.r. 459. the gentleman from maryland. mr. cummings: mr. speaker, i yield the gentleman from massachusetts 30 seconds. the speaker pro tempore: the gentleman from massachusetts is recognized for 30 seconds. mr. frank: mr. speaker, i'm glad that the committee on

government oversight is not the one that started. in fact, there was a motion to include language like this offered to the financial reform bill. i voted no, as did mr. watt. it wasn't included in the bill. it's true i voted for the bill. of course, the gentleman from texas voted against the bill. if you vote for the whole bill as taken on how you feel he was against it. when it went to conference it was not in the senate bill which was the text of the conference so we it did not come up and -- so it did not come up and no republican conferee offered it as an amendment. that is in the conference that language which i and the gentleman from north carolina voted against was not offered by any member of the conference, democrat or republican. the speaker pro tempore: the gentleman's time has expired. the gentleman from california. mr. issa: history records that democrats broadly voted for it when it was voted out of this body. nothing more needs to be said. with that i recognize the gentlelady from tennessee, mrs. blackburn, for one minute. the speaker pro tempore: the

gentlelady from tennessee is recognized for one minute. mrs. blackburn: thank you, mr. chairman, and i thank the gentleman from california for the time, and i want to commend the gentleman from texas, mr. paul, for his excellent work on this issue. recently i had a constituent say to me in a town hall meeting they thought it was time for congress to start putting some mandates on the federal government. they're tired of government mandates on them. why don't we mandate, why don't we hold them accountable? this is a piece of legislation that does exactly that. it requires the g.a.o. to conduct a full audit of the board of governors of the federal reserve system and of the federal reserve bank by the comptroller general before the end of the year. that is significant. a timeline to do a job, to be held accountable to the people of this great nation for how they spend their time, their money, the decisions they make

that affect us. it is imperative that we get this economy back on track. the actions that we will vote on today are part of that. having a federal reserve that is accountable, accountable to our constituents, accountable to the people of this nation. i commend the gentleman for a move toward transparency and accountability. i yield back. the speaker pro tempore: the gentleman from maryland. mr. cummings: mr. speaker, may i inquire as to how much time we have left? the speaker pro tempore: the gentleman from maryland has 6 1/2 minutes remaining. the gentleman from california has 9 1/4 minutes remaining. mr. cummings: mr. speaker, i yield myself such time as i may consume. the speaker pro tempore: the gentleman is recognized. mr. cummings: mr. speaker, i rise today in opposition to h.r. 459 which passed out of the oversight committee without even a single hearing and without testimony from any federal reserve officials. let me be clear, the government accountability office has had the authority to audit the federal reserve's books for three decades. in 2010, the dodd-frank act

expanded the types of audits g.a.o. conducts of the federal reserve as well as the data the fed must disclose to the dub. dodd-frank required g.a.o. to audit the emergency financial assistance provided during the financial crisis. the act also opens discount window operations and open market operations to audit so g.a.o. can assess the operational integrity, collateral policies, fairness, use of third-party contractors. and dodd-frank requires the federal reserve to release information regarding borrowers and counterparties participating in discount lending programs and open market operations. mr. speaker, as a conferee who helped craft the final dodd-frank legislation, i supported all of these provisions. i believe other areas of the federal reserve's operations are also right for audit. during the committee's consideration of this legislation, i offered an amendment that would require g.a.o. to perform an audit of

the independent foreclosure re views. 14 mortgage servicers have been required to establish a process under which borrowers can request an independent review of their loan histories. but at the end of may, only 200,000 out of 4.4 million borrowers have requested an independent review of their foreclosure cases. we need to understand whether the design of the program is limited to a number of borrowers who sought reviews of their cases. further, it is unclear how the types and amounts of remediation are being determined. this is precisely the type of issue that should be reviewed by the g.a.o. the public has the right and the congress has a responsibility to know and understand the transactions and enforcement transactions undertake bin the nation's central bank. however when congress established the fed in 1913 it understood that independence

from political interference was critical to the bank's ability to fulfill its monetary policy responsibilities. the dodd-frank act was carefully crafted to expand transparency while preserving the protections that ensured the independence of the federal reserve's internal deliberations on monetary policy matters. the board of governors of the federal reserve must be able to pursue the policies it considers most response to have our nation's current economic conditions and most likely to fulfill its dual mandate of promoting maximum employment and stable prices. we should not allow g.a.o. examinations to be the backdoor through which politics intrudes on monetary policy. which is what this legislation will allow. opening the federal reserve's internal policy deliberations to g.a.o. review would influence how such deliberations are conducted and potentially the policies that are chosen best -- thus degrading the fed's independence. last week chairman of the

federal reserve, mr. bernanke, described the potential impact of this bill to the financial services committee and said, and i quote, the nightmare scenario i have is one in which some future fed chairman would decide to raise the federal funds rate by 25 basis points and somebody would say, i don't like that decision, i want the g.a.o. to go in and get all the resorts -- records, get all the transcripts, get all the preparetory materials and give us an independent opinion whether or not that was the right decision. i share chairman bernanke's concern. for that reason during the markup of this legislation in the oversight committee, i offered an amendment that would have retained the protections for the board of governors in term of monetary policy deliberations to ensure that the audit required by this legislation did not intrude on the federal reserve's independence. i continue to believe this provision is needed to ensure this bill does not inhibit the

ability of the federal reserve to implement monetary policies to strengthen our nation's economy as it has done repeatedly throughout the recent financial cry sills. the speaker pro tempore: -- crisis. the speaker pro tempore: the gentleman reserve his time? mr. cummings: yes. the speaker pro tempore: the gentleman reserves. the gentleman from california. mr. issa: can i inquire of the time remaining? the speaker pro tempore: the gentleman from california has 91 fourts minutes remain -- -- 9 1/4 minute remaining. mr. issa: thank you. i now yield to the gentlelady from kansas. the speaker pro tempore: the gentlelady from kansas is recognized for one minute. ms. jenkins: i thank the gentleman for yielding and i thank dr. paul for his leadership on this very important issue. mr. speaker, the federal reserve lent out $16 trillion during the fiscal crisis. that's larger than the entire u.s. economy or worse our federal debt. trillions of taxpayer dollars and we have very little understanding of where it went. congress holds the purse. but we have no oversight over how the fed manages the funds. this is why i've co-sponsored a

bipartisan effort to audit the fed in full. it's our responsibility. current monetary policy audits of the fed are insufficient. most fed operations consist of transactions with foreign central banks and yet they are exempt from review. when corruption is suspected, a common refrain is, follow the money. with the historic sovereign debt crisis brewing in europe, we must look closely at our own balance sheet. we must follow the money. as a c.p.a. i know we need more transparency in washington. it should start with the federal reserve. i yield back. the speaker pro tempore: the gentleman from maryland. mr. cummings: i yield to mr. kucinich one minute. the speaker pro tempore: the gentleman from ohio is recognized for one minute. mr. kucinich: i ask unanimous consent to include in the record of this debate an article about the fed's policy model sacrifices its maximum employment mandate and targets

5% to 6% unemployment. the speaker pro tempore: without objection. mr. kucinich: i ask unanimous consent to include in the record of this debate an article from bloomberg news that talks about how secret fed loans gave banks billions that were undisclosed to congress. the speaker pro tempore: without objection. mr. kucinich: this is all about disclosure and accountability. you know, the fed's not some kind of hocus pocus black box operation. the fed essentially supplants the constitutional mandate in article 1, section 8, that belongs to the congress of the united states. let's look at some recent history here. 2008, subprime meltdown, collateralized debt obligation, go back for mortgage-backed securities. people losing their homes. the fed looked the other way. and we're saying, oh, don't go into the fed, it would be political. yes, it's political. we have unemployment because of politics. we have people losing their homes because of politics. we have banks getting uncalculated amounts of money

from the federal reserve and we don't even know about it. meanwhile people can't get a loan to keep their home or keep their business. audit the fed, you bet we should audit the fed. it's time that congress stood for its constitutional role. article 1, section 8, power to create money. it's time we stood up for america's 99%. it's time that we stood up to the federal reserve that right now acts like it's some kind of high exalted priesthood, unaccountable in a democracy. let's change that by voting for >> live coverage of the house at 12:00 noon. >> mitt romney speak to the veterans of foreign wars convention.

house debate on a bill sponsored by representative ron paul to acquire an audit of the federal reserve. >> wednesday on washington journal, a congressman will discussed u.s. relations with the mexican president. then a, grossmaa fight over thes and defense cuts is talked about. the editor in chief of reason.com will take your calls. washington journal is live starting at 7:00 a.m. eastern on c-span. >> the brookings institution.

see it live starting at 2:00 p.m. eastern on c-span 3. >> this weekend. >> let me open up the discussion by asking what the nature of the clash between truman. is this a clash of policy? is this a problem of personalities? >> from lectures, johns hopkins professor elliott on the relationship that led a president to relieve a general at the height of a korean -- the korean war. saturday. sunday, more from the contenders. the political leaders that changed history. his grandfather was the vice president's.

-- vice-president. he ran twice against eisenhower. 7:30 eastern. the veterans of foreign wars convention. he said he kept his promises to end the iraq war responsibly and to wind down the war in afghanistan. from nevada, his remarks are 35 minutes. >> thank you so much. it is now my honor to introduce someone who is no stranger to the veterans of foreign wars of the united states or to the vfw national convention stage. he was born in hawaii, raised with midwestern values and educated at columbia and harvard. he served in the state senate for eight years and before becoming a u.s. senator from illinois in 2004.

he would co-sponsor numerous vfw supported legislation like the post-9/11 gi bill. he would attend the vfw washington office legislative conference reception and appear on this stage for two years in a row as a candidate for our nation's highest office. then he appeared to us again after he got the job in 2009 when he would exchange diplomatic notes with the russian president to revitalize the u.s.-russia said joint commission and would go on to sign into law and other top legislative priority, advance appropriations for the department of veterans affairs. he said he would take care of veterans, service members, and their families, and he has been true to his word. [applause]

mr. president, i would be definitely remiss not to add our profound appreciation for all of the superlative work the first lady and dr. biden do for the troops and especially their families. [applause] thanks to you, mr. president, and vice president biden, for these two extraordinary ladies. and now, a distinguished guest, please heartily welcome the 44th president of the united states, barack obama. [applause] >> god bless you. >> thank you. >> thank you. hello. thank you so much. please, please, everybody have a seat. commander denoyer, thank you

for your introduction, and your service in vietnam and on behalf of america's veterans. i want to thank your executive director, bob wallace; your next commander, who i look forward to working with, john hamilton. and to gwen rankin, leanne lemley, and the entire ladies auxiliary, thank you for your patriotic service to america. i stand before you as our hearts still ache over the tragedy in aurora, colorado. yesterday i was in aurora, with families whose loss is hard to imagine -- with the wounded, who are fighting to recover; with a community and a military base in the midst of their

grief. and they told me of the loved ones they lost. and here today, it's fitting to recall those who wore our nation's uniform: staff sergeant jesse childress -- an air force reservist, 29 years old, a cyber specialist who loved sports, the kind of guy, said a friend, who'd help anybody. petty officer third class john larimer -- 27 years old, who, like his father and grandfather before him, joined the navy, and who is remembered as an outstanding shipmate. rebecca wingo -- 32 years old, a veteran of the air force, fluent in chinese, who served as a translator; a mother, whose life will be an inspiration to her two little girls. and jonathan blunk -- from reno, just 26 years old, but a veteran of three navy tours, whose family and friends will

always know that in that theater he gave his own life to save another. these young patriots were willing to serve in faraway lands, yet they were taken from us here at home. and yesterday i conveyed to their families a message on behalf of all americans: we honor your loved ones. we salute their service. and as you summon the strength to carry on and keep bright their legacy, we stand with you as one united american family. veterans of foreign wars, in you i see the same shining values, the virtues that make america great. when our harbor was bombed and

fascism was on the march, when the fighting raged in korea and vietnam, when our country was attacked on that clear september morning, when our forces were sent to iraq -- you answered your country's call. because you know what americans must always remember -- our nation only endures because there are patriots who protect it. in the crucible of battle, you were tested in ways the rest of us will never know. you carry in your hearts the memory of the comrades you lost. for you understand that we must honor our fallen heroes not just on memorial day, but all days. and when an american goes missing, or is taken prisoner, we must do everything in our power to bring them home. even after you took off the uniform, you never stopped serving.

you took care of each other -- fighting for the benefits and care you had earned. and you've taken care of the generations that followed, including our newest veterans from iraq and afghanistan. on behalf of all our men and women in uniform, and on behalf of the american people, i want to thank you, vfw. thank you for your outstanding work. of course, some among you -- our vietnam veterans -- didn't always receive that thanks, at least not on time. this past memorial day, i joined some of you at the wall to begin the 50th anniversary of the vietnam war.

and it was another chance to say what should have been said all along: you did your duty, and you made us proud. and as this 50th anniversary continues, i'd ask all our vietnam vets to stand, or raise your hand, as we say: thank you and welcome home. every generation among you served to keep us strong and free. and it falls to us, those that follow, to preserve what you won. four years ago, i stood before you at a time of great challenge for our nation.

we were engaged in two wars. al qaeda was entrenched in their safe havens in pakistan. many of our alliances were frayed. our standing in the world had suffered. we were in the worst recession of our lifetimes. around the world, some questioned whether the united states still had the capacity to lead. so, four years ago, i made you a promise. i pledged to take the fight to our enemies, and renew our leadership in the world. as president, that's what i've done.

and as you reflect on recent years, as we look ahead to the challenges we face as a nation and the leadership that's required, you don't just have my words, you have my deeds. you have my track record. you have the promises i've made and the promises that i've kept. i pledged to end the war in iraq honorably, and that's what we've done. [applause] after i took office, we removed nearly 150,000 u.s. troops from iraq. and some said that bringing our troops home last year was a mistake. they would have kept tens of thousands of our forces in iraq -- indefinitely, without a clear mission. well, when you're commander-in- chief, you owe the troops a plan, you owe the country a plan -- and that includes recognizing not just when to begin wars, but also how to end them. so we brought our troops home responsibly.

they left with their heads held high, knowing they gave iraqis a chance to forge their own future. and today, there are no americans fighting in iraq, and we are proud of all the americans who served there. [applause] i pledged to make it a priority to take out the terrorists who had attacked us on 9/11. and as a candidate, i said that if we had osama bin laden in our sights, we would act to keep america safe -- even if it meant going into pakistan. some of you remember, at the time, that comment drew quite a bit of criticism. but since i took office, we've worked with our allies and our partners to take out more top al qaeda leaders than any time since 9/11. and thanks to the courage and the skill of our forces, osama bin laden will never threaten america again, and al qaeda is on the road to defeat.

[applause] i pledged to finish the job in afghanistan. after years of drift, we had to break the momentum of the taliban, and build up the capacity and the capability of afghans. and so, working with our commanders, we came up with a new strategy, and we ordered additional forces to get the job done. this is still a tough fight. but thanks to the incredible services and sacrifices of our troops, we pushed the taliban back; we're training afghan forces; we've begun the transition to afghan lead. again, there are those who argued against a timeline for ending this war -- or against talking about it publicly.

but you know what, that's not a plan for america's security either. after 10 years of war, and given the progress we've made, i felt it was important that the american people -- and our men and women in uniform -- know our plan to end this war responsibly. [applause] and so by the end of this summer, more than 30,000 of our troops will have come home. next year, afghans will take the lead for their own security. in 2014, the transition will be complete. and even as our troops come home, we'll have a strong partnership with the afghan people, and we will stay vigilant so afghanistan is never again a source for attacks against america. [applause] we're not just ending these wars; we're doing it in a way that achieves our objectives. moreover, it's allowed us to broaden our vision and begin a

new era of american leadership. we're leading from europe to the asia pacific, with alliances that have never been stronger. we're leading the fight against nuclear dangers. we've applied the strongest sanctions ever on iran and north korea -- nations that cannot be allowed to threaten the world with nuclear weapons. [applause] we're leading on behalf of freedom -- standing with people in the middle east and north africa as they demand their rights; protecting the libyan people as they rid the world of muammar qaddafi. today, we're also working for a transition so the syrian people can have a better future, free of the assad regime. and given the regime's stockpiles of chemical weapons, we will continue to make it clear to assad and those around him that the world is watching,

and that they will be held accountable by the international community and the united states, should they make the tragic mistake of using those weapons. and we will continue to work with our friends and our allies and the syrian opposition on behalf of the day when the syrian people have a government that respects their basic rights to live in peace and freedom and dignity. because we're leading around the world, people have a new attitude toward america. there's more confidence in our leadership. we see it everywhere we go. we saw it as grateful libyans waved american flags. we see it across the globe -- when people are asked, which country do you admire the most, one nation comes out on top -- the united states of america. so this is the progress that we've made.

thanks to the extraordinary service of our men and women in uniform, we're winding down a decade of war; we're destroying the terrorist network that attacked us; we're strengthening the alliances that extend our values. and today, every american can be proud that the united states is safer and stronger and more respected in the world. and all this allows us to fulfill another promise that i made to you four years ago -- strengthening our military. after 10 years of operations, our soldiers will now have fewer and shorter deployments, which means more time on the home front to keep their families strong; more time to heal from the wounds of war;

more time to improve readiness and prepare for future threats. as president, i've continued to make historic investments to keep our armed forces strong. and guided by our new defense strategy, we will maintain our military superiority. it will be second to none as long as i am president and well into the future. we've got the best-trained, best-led, best-equipped military in history. and as commander-in-chief i am going to keep it that way. [applause] and by the way, given all the rhetoric lately -- it is political season -- let's also set the record straight on the budget. those big, across-the-board cuts, including defense, that congress said would occur next year if they couldn't reach a deal to reduce the deficit?

let's understand, first of all, there's no reason that should happen, because people in congress ought to be able to come together and agree on a plan, a balanced approach that reduces the deficit and keeps our military strong. it should be done. and there are a number of republicans in congress who don't want you to know that most of them voted for these cuts. now they're trying to wriggle out of what they agreed to. instead of making tough choices to reduce the deficit, they'd rather protect tax cuts for some of the wealthiest americans, even if it risks big cuts in our military. and i've got to tell you, vfw, i disagree. if the choice is between tax cuts that the wealthiest americans don't need and funding our troops that they definitely need to keep our country strong, i will stand

with our troops every single time. [applause] so let's stop playing politics with our military. let's get serious and reduce our deficit and keep our military strong. let's take some of the money that we're saving because we're not fighting in iraq and because we're winding down in afghanistan -- use half that money to pay down our deficit; let's use half of it to do some nation-building here in the united states of america. let's keep taking care of our extraordinary military families. for the first time ever, we've made military families and veterans a top priority not just at dod, not just at the va, but across the government. as richard mentioned, this has been a mission for my wife, michelle, and vice president joe biden's wife, dr. jill

biden. today, more people across america in every segment of society are joining forces to give our military families the respect and the support that they deserve. and there's another way we can honor those who serve. it may no longer be a crime for con artists to pass themselves off as heroes, but one thing is certain -- it is contemptible. so this week, we will launch a new website, a living memorial, so the american people can see who's been awarded our nation's highest honors. because no american hero should ever have their valor stolen. this leads me to another promise i made four years ago -- upholding america's sacred

trust with our veterans. i promised to strengthen the va, and that promise has been kept. in my first year, we achieved the largest percentage increase in the va budget in 30 years. and we're going to keep making historic investments in our veterans. when richard came to the oval office, we talked about what those automatic budget cuts -- sequestration -- could mean for the va. so my administration has made it clear -- your veteran's benefits are exempt from sequestration. they are exempt. and because advance appropriations is now the law of

the land, veterans' health care is protected from the budget battles in washington. i promised you that i'd stand up for veterans' health care. as long as i'm president, i will not allow va health care to be turned into a voucher system, subject to the whims of the insurance market. some have argued for this plan. i could not disagree more. you don't need vouchers, you need the va health care that you have earned and that you depend on. [applause] so we've made dramaticinvestments to help care for our veterans. for our vietnam veterans, we declared that more illnesses are now presumed connected to your exposure to agent orange. as a result of our decision, vietnam-era vets and your families received nearly $4

billion in disability pay. you needed it; you fought for it. we heard you and we got it done. [applause] we've added mobile clinics for our rural veterans; more tailored care for our women veterans; unprecedented support for veterans with traumatic brain injury. all tolled, we've made va health care available to nearly 800,000 veterans who didn't have it before. and we're now supporting caregivers and families with the skills and the stipends to help care for the veterans that they love. of course, more veterans in the system means more claims. so we've hired thousands of claims processors. we're investing in paperless systems. to their credit, the dedicated

folks at the va are now completing one million claims a year. but there's been a tidal wave of new claims. and when i hear about veterans waiting months, or years, for your benefits -- it is unacceptable. and we are doing something about it. we're taking all those folks who processed your agent orange claims -- more than 1,200 experts -- and giving them a new mission, attack the backlog. we're prioritizing veterans with the most serious disabilities. and the va and dod will work harder towards a seamless transition so new veterans aren't just piled on to the backlog. and we will not rest -- i will not be satisfied until we get this right. and today, i'm also calling on all those who help our vets complete their claims -- state vas, physicians and veteran groups like the vfw -- to join

us. you know how this can work better, so let's get it done, together. we're also focused on the urgent needs of our veterans with ptsd. we've poured tremendous resources into this fight -- thousands of more counselors and more clinicians, more care and more treatment. and we've made it easier for veterans with ptsd to qualify for va benefits. but after a decade of war, it's now an epidemic. we're losing more troops to suicide -- one every single day -- than we are in combat. according to some estimates, about 18 veterans are taking their lives each day -- more every year than all the troops killed in iraq and afghanistan combined. that's a tragedy. it's heartbreaking. it should not be happening in the united states of america.

so when i hear about servicemembers and veterans who had the courage to seek help but didn't get it, who died waiting, that's an outrage. and i've told secretary panetta, chairman dempsey and secretary shinseki we've got to do better. this has to be all hands on deck. so our message to everyone who's ever worn the uniform -- if you're hurting, it's not a sign of weakness to seek help, it's a sign of strength. and when you do, we'll be there and do more to help -- including more counselors and clinicians to help you heal. we need to end this tragedy, vfw. and we're going to work together to make it happen. [applause] so, too with our campaign to end homelessness among our veterans. we've now helped to bring tens of thousands of veterans off the streets and into permanent housing.

this has to be a core mission, because every veteran who has fought for america ought to have a home in america. and this brings me to the last promise i want to discuss with you. four years ago, i said that i'd do everything i could to help our veterans realize the american dream, to enlist you in building a stronger america. after all, our veterans have the skills that america needs. so today, our economy is growing and creating jobs, but it's still too hard for too many folks to find work, especially our younger veterans, our veterans from iraq and afghanistan. and with a million more troops rejoining civilian life in the years ahead -- and looking for work -- we've got to step up our game, at every stage of their careers. so today, i'm announcing a major overhaul of our transition assistance program.

we're going to set up a kind of "reverse boot camp" for our departing servicemembers. starting this year, they'll get more personalized assistance as they plan their careers. we'll provide the training they need to find that job, or pursue that education, or start that business. and just as they've maintained their military readiness, we'll have new standards of "career readiness." in addition, by making the post-9/11 gi bill a priority, we've helped more than 800,000 veterans and their families pursue their education. and i've issued an executive order to help put a stop to schools that are ripping off our veterans. i've directed the federal government to step up on jobs. since i took office, we've hired more than 200,000 veterans into the federal government.

we made it a priority. and we're keeping track -- every agency, every department -- what are you doing for our veterans? i've challenged community health centers to hire thousands of veterans as physicians and nurses. and as we help local communities hire new police officers and firefighters and first responders, we're giving a preference to veterans. we're also fighting to get more vets hired in the private sector. with new tools like our online veterans jobs bank, we're connecting veterans directly to jobs. we're helping thousands of veterans get certified for good- paying jobs in manufacturing. we succeeded in passing tax credits for businesses that hire our veterans and our wounded warriors. and this morning, i signed into law the veteran skills to jobs act -- making it easier for veterans to transfer their outstanding military skills into the licenses and credentials they need to get civilian jobs.

if you are a young man that is in charge of a platoon or millions of dollars of equipment and are taking responsibility, or you're a medic out in the field who is saving lives every single day -- when you come home, you need to be credentialed and certified quickly so you can get on the job. people should understand how skilled you are. and there shouldn't be bureaucrats or runarounds. we've got to put those folks to work. last summer, i also challenged the private sector to hire or train 100,000 veterans or their spouses. michelle and jill biden have been leading the effort, through joining forces. and so far, thousands of patriotic businesses have hired or trained more than 90,000 veterans and spouses. and our message to companies is simple -- if you want somebody who gets the job done, then hire a vet.

hire a vet. hire a vet and they will make you proud just like they've made america proud. and we're fighting for veterans who want to start their own businesses, including more training in entrepreneurship. it's one of the reasons we've cut taxes -- 18 times for small businesses, including veteran- owned businesses. and the effects ripple out, because vets are more likely to hire vets. so today, we can point to progress. more veterans are finding jobs; the unemployment rate for veterans has come down. yes, it's still too high, but it's coming down. and now we've got to sustain that momentum. it's one of the reasons i've proposed to congress a veterans jobs corps to put our veterans back to work protecting and rebuilding america. and today, i am again calling on congress -- pass this veterans jobs corps and extend the tax credits for businesses that hire veterans so we can

give these american heroes the jobs and opportunities that they deserve. [applause] so, vfw, these are the promises that i made. these are the promises that i've kept. where we still have more to do, we will not rest. that's my vow to you. i've got your back. i've got your six. because we have a solemn obligation to all who serve -- not just for the years you're in uniform, but for all the decades that follow, and because even though today's wars are ending, the hard work of taking care of our newest veterans has only just begun. just as you protected america, we're going to pass our country

to the next generation, stronger and safer and more respected in the world. so if anyone tries to tell you that our greatness has passed, that america is in decline, you tell them this -- just like the 20th century, the 21st is going to be another great american century. for we are americans, blessed with the greatest form of government ever devised by man, a democracy dedicated to freedom and committed to the ideals that still light the world. we will never apologize for our way of life; we will never waver in its defense. we are a nation that freed millions and turned adversaries into allies. we are the americans who defended the peace and turned back aggression. we are americans who welcome our global responsibilities and

our global leadership. the united states has been, and will remain, the one indispensable nation in world affairs. and you, you are the soldiers, the sailors, the airmen, the marines and the coast guardsmen who have kept us strong. we will honor your legacy. and we will ensure that the military you served, and the america that we love, remains the greatest force for freedom that the world has ever known. god bless you. god bless all of our veterans. and god bless the united states of america. [applause] ♪ ♪

♪ >> 16, congressman henry cuellar discuss relations with the mexican president. then scott garrett talks about

tax cuts and defense sequestration. and later nick gillespie will take your calls about his article highlighting entitlement gaps between the generations. washington journal is live at 7:00 a.m. eastern on c-span. >> mitt romney spoke to the veterans of foreign wars. one day after pope. he accused the white house of leaking classified information that killed osama bin laden and called for a special counsel to investigate. he outlined his policy on the future of u.s. involvement in afghanistan and iran. his remarks from reno--- reno, nev. are 25 minutes.

>> thank you so much. it is a source of pride for us to see a combat veteran from massachusetts serving as a national commander of the vfw. great job, cmdr. thank you. the auxiliary president, incoming national commander john hamilton, executive director bob wallace, distinguished guests and members, thank you for your generous welcome.

i want to start with a few words about the tragedy in colorado last week. we have since learned that among the victims were four people who served or were serving our country in uniform. today our hearts go out to the families. an air force veteran, an army veteran and member of the air force reserves and a veteran who died shielding his girlfriend from the spray of bullets. the loss of four americans who served our country only adds to the tragedy of that day. all americans here are grateful for their service and saddened by their deaths. we mourn them and we will remember them. the vfw is now over 2 million strong. it has a special place in america's heart. some of you fought recently in

iraq or afghanistan. others are old enough to have marched by orders of franklin roosevelt. whatever your age, whether you are republican or democrat, whenever you served, there is one thing you have in common -- you answered the call of your country, in a time of war. whenever america has been tested, you stepped forward. you come from our farms, our great cities, our small towns and quiet neighborhoods. many of you have known of violence so that your neighbors could know peace. it is an honor to address you today. [applause] our veterans are part of a proud tradition that stretches back to the battlefield of lexington and concord.

now to places like kandahar. our men and women have added proud achievements to their service and president obama appointed some of them yesterday in his speech. anytime our military accomplishes a vital mission, it is a proud moment for our nation. but we owe our veterans and military more than an accounting of our successes. they deserve a fair and frank assessment of the whole picture of where we are and where we want to be. when it comes to national security and foreign policy, the last few years have been a time of declining influence and of missed opportunity. consider some of the challenges

i discussed with you at the last national convention. since then, has the american economy recovered? has our ability to shape world events been enhanced or diminished? have we gained greater confidence among our allies and greater respect from our adversaries? has the most severe security threat facing america and our friends, a nuclear-armed iran, become more likely or less likely? these are measures of the ultimate test of american leadership and by these standards, we have not seen much in the president's first term that inspires confidence in a second. the president's policy that made it harder to recover from the deepest recession in 70 years. exposed the military to cuts that no one can justify. compromised our national security secrets. [applause]

and in dealings with other nations, he has given trust where it is not earned, insults where it was not deserved and apology where it was not due. [applause] from berlin to cairo to the united nations, president obama has shared his view of america and his place among nations. i have come here today to share mine. i am an unapologetic believer in the greatness of america. [applause] i am not ashamed of american

power. i take pride that throughout history, our power has brought justice where there was tyranny, peace where there was conflict and help where there was affliction and despair. i do not view america as one more place on the map or one more power to the balanced i believe our country is the greatest force for good the world has ever known and our employees is needed today as ever before. [applause] and i am guided by one overwhelming conviction and passion. this century must be an american century. in 1941, henry louis called on his countrymen realizing their

strength to create the first great american century and they did. together with their allies, they won world war ii. and america took its place as leader of the free world. across the globe, they fought, they bled, they lead. they showed the world the extraordinary courage of the american heart. that remains unchanged today but sadly the president has diminished american leadership. the world is dangerous, destructive and the two men running fro the commander in chief lifespan face the challenges we face. like a watchman in the night we must remain vigilant. we have the strongest economy

and military in the world. if by necessity we must employ it, we must wield our strength with resolve. in an american century, we lead the free world and the free world leads the entire world. if they do not have the strength of vision to lead, other powers will take our place, pulling history in a different direction. a just and peaceful world depends on a strong and confident america. if i become commander in chief, the united states of america will fulfill its destiny and its duty. [applause]

now our leadership depends on our economic strength, on our military strength and our moral strength. if any one of those can compensate. the strength of our economy is in jeopardy. a healthy economy is what underwrites american power. when growth is missing, government revenues fall, social spending rises and washington looks to cut defense spending as the easy way out. that includes our president. today we are months away from an arbitrary the budget reduction that would saddle the military with $1 trillion in cut. it would impair our ability to meet and deter threats. do not bother trying to finding

a serious military rationale behind that unless that rationale is wishful thinking. strategy is not driving the president's massive defense cuts. his own secretary of defense warned those reductions would be devastating. they would weaken an already stretched system. if i am president, i will not let that happen. [applause] this is no time for the president's radical cuts in our military. look around the world. other major powers are rapidly adding to the military capabilities. some with intentions very

different than our own. the regime in tehran is closer to developing nuclear weapons. the threat of radical islamist terrorism persists. weapons of mass destruction proliferation. we are still at war and still have uniformed men and women in, for it. all of this and more is going on and yet the president has chosen this moment for wholesale reductions in -- with the biggest announcement in the last state of the union address on improving our military was that the pentagon will start using more clean energy, you know it is time for a change. [applause] we are not the first people to observe the spirit it is reported that bob gates, the first secretary of defense, i

just another security problem. after the white house leaked secret operational details of the osama bin laden raid to reporters, secretary gates told the obama team to shut up. he added a colorful word for emphasis. lives are at stake but the administration failed to change its ways. more top-secret operations were leaked, even some of involving covert actions in iran. this is a national security crisis. democrat senator dianne feinstein asked today, chairman of the senate intelligence committee, said, i think the white house has to understand that some of it is coming from

them. this conduct betrays our national interest. it compromises our men and women and it demands a full and prompt investigation by special counsel with explanation and consequence. obama appointees who are accountable to the attorney- general should not be responsible for investigating the leaks coming from the white house. whoever provided classified information to the media must be exposed, dismissed and punished. the time for stonewalling is over. [applause] it is not enough to say the matter is being looked into and leave it at that. when the issue is the political use of a highly sensitive national security information, it is unacceptable to say we

will report our findings after the election who in the white house perpetrated these secrets? these are things americans are entitled to know. the president believes that the buck stops with him, he owes all americans a prompt accounting of the facts. let me be very clear -- these events make the decision we face in november all the more important. what kind of white house would reveal classified material for political gain? i will tell you right now -- mine will not. [applause] the harm that is that when national security secrets are betrayed extends to the trust

that allies place in the united states. the operating principle of american foreign-policy has been to work with our allies to deter aggression before it breaks out into conflict. that policy depends on nurturing our alliances and standing up for our values. if the president moves in the opposite direction. it began with the abandonment of our friends in poland. they were told at the last hour that the agreement was off. as part of their policy. missile defenses were sacrificed as a unilateral concession to the russian government. it that gesture was designed to inspire good will from russia, it missed the mark. the russian government defended the dictator in damascus.

i can only guess what putin makes of the obama administration. he got a congratulatory call from the oval office spirit then that exchange picked up by a microphone that president obama did not know was on. he told putin to give him space. this is my last election, he said. after this, i will have more flexibility. why is that flexibility with russian leaders is more important to him than transparency for the american people? [applause] now the president did have a moment of candor the other day. he said the actions of venezuelan dictator hugo chavez have not had a serious national security impact on us. in my view, inviting hezbollah

into our hemisphere is severe, serious and a threat. i will recognize it as such. [applause] but at least he was being consistent. this is the president who faltered when the iranian people were looking for support in their struggle against the ayatollah. that uprising was treated as an inconvenient problem for the president of policy engagement instead of a moral opportunity. that misjudgment should never be -- -- be repeated. when unarmed men and women find the courage to stand against their oppressors, they should hear the voice of an american president affirming their right to be free. i will be leaving this evening on a trip abroad that will take me to england and elsewhere. i will tell you what i think of

this administration's treatment of one of our finest friends. president obama is fond of lecturing israel's leaders. he is undermine their position which was tough enough as it was. even at the united nations to the applause of israel's enemies, his boat as if our closest ally was a problem. the people of israel deserve better. the chorus of accusations and threats at the united nations should never again include the voice of the president of the united states. [applause] their values and causes that

depend on american strength and clarity of our purpose and the reliability of our commitments. there is work that only america and our allies can do. hostile powers that only we can deter and challenges that only we can overcome. i will have a solemn duty as commander in chief to our men and women in uniform. the troops, their families and the american people -- give them a clear explanation of our commitments. i have been critical of the decision to withdraw search troops during the fighting season against it by some commanders on the ground. the president would have you believe that anyone who is disagreeing with his decision is arguing for endless war. it is a politically time to retreat.

as president, michael in -- my goal in afghanistan will be to complete a successful transition to afghan security forces by the end of 2014. i will solicit the best advice of our military commanders and affirm that my duty is not to my political prospects but the security of the nation and safety of our troops. [applause] we face another challenge in a rising china. china too often disregards the rights of its people. it is selected in the freedoms it allows and with its one child policy, it can be ruthless in crushing the freedoms it denies. in trading with america, it commits a flagrant hypocrisy

patent violations. it manipulates its currency to maintain an unfair advantage. it is our mutual interest for china to be a partner for a stable and secure world. we welcome its participation in trade but the cheating must be brought to a stop. the president has not done it and will not do it and i will. [applause] we will need that clarity of purpose and result in the middle east. america cannot be neutral in the outcome there. we have to clearly stand for the values that represented economic opportunity and human- rights and we must stand against the extension of iranian influence. egypt is at the center of this drama. it has the power to tip the

balance in the arab world toward freedom. as president, i will work with partner nations deeper place conditions on their assistance. unifying our common purpose doubled foster the development of a government that represents all egyptians, maintains peace with israel. the united states is willing to help egypt support peace and prosperity but will not be a composite in oppression. -- be complicit in oppresion. there is no greater danger in the world today than the prospect of ayatollahs in tehran possess a nuclear weapons capacity. with all the talks and assurances, can anyone say we are further from this danger now than we were four years ago? the same ayatollahs who chanted "death to america" will not be talked out of their contempt for our country.

sanctions must be enforced without exception, cutting off the sources of wealth. negotiations must secure full access for inspections. as it is, the iranian regime claims the right to enrich nuclear material for supposedly peaceful purposes. this claim is discredited by years of deception. a clear line has to be drawn. there must be a full suspension of any enrichment whatsoever. period. [applause] and at every turn, iran must know that the united states and

our allies stand as one in these critical objectives. only in this way can be successfully counter the threat that iran represents to us in the world. i pledge to you and all americans that if i become commander in chief, i will use every means necessary to protect ourselves and the region and prevent the worst from happening while there is still time. it is a mistake to think that firmness in american foreign policy can only bring tension or conflict. the surest path to danger is always weakness and indecision. [applause] in the end, it is resolved that moves events in our direction and strength that keeps the peace.

i will not surrender america's leadership in the world. we must have confidence in our cause, clarity in our purpose and resolved in our minds. it is very simple. if you do not want america to be the strongest nation on earth, i am not your president. but with his cuts to the military, you have that president today. this century began with terror, war, economic calamity. it is our duty to move towards freedom, peace and prosperity. the people here today cannot hold the torch as high as they have in the past. they are getting older. it is our turn. we have to seize that torch they carried with such great sacrifice.

it is an eternal torch of decency and freedom and hope. it is not our torch alone but america's duty and honor to hold it high enough so the whole world can see it. i love america, i love what america represents. i love the sacrifice america has made for freedoms throughout the world. this is a critical time for our nation, a time of choice. we will have another american century with freedom blossoming and prosperity for all our citizens here because i believe in america. i believe in you. i salute you. together we will make sure we keep america the whole of the earth. thank you so very much and god bless the vfw and the united states of america. [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2012]

>> today, it tim died near is before the house financial services committee -- tim geithner is before the house financial services committee. live at 9:30 eastern on c-span3. richard cordray responded to lawmakers on tuesday regarding concerns with the rulemaking process and consumer credit access. he says the goal is consumer protection and access to credit for those that need it. he testified for two hours before the subcommittee on financial services. >> the subcommittee on the financial-services and bailout

of private and public programs. our hearing is entitled credit crunch, restricting consumer access to credit. we have two panels today. the first is richard cordray. and then in the second panel we have four individuals that are from think tanks and the private sector. the tradition of this subcommittee is to begin with the mission statement. we exist to secured two principles. americans have a right to know that the money washington takes from them is well spent and they deserve an efficient and effective government that works for them. and our duty is to protect these rights. our responsibility as taxpayers have a right to know what they get from their governments. we will work tirelessly with

watchdogs to deliver the facts to the american people and bring reform to the federal bureaucracy. this is the mission statement of the oversight reform committee. i will now recognize myself for the purposes of an opening statement for four minutes. on the hearing subcommittee will examine how regulatory actions can restrict access to credit as well as a metrics and tools employed to consider the availability of credit in the course of its work. the american people deserve to know regulations that discourage and disciplined financial fraud without compromising access to credit for consumers and small businesses. as our country continues to exhibit slow but -- sluggish growth and the possibility of

slipping into recession, it has become more important than ever to ensure that our markets in compass adequate liquidity and credit for american businesses and families. mr. cordray has already resulted in a lawsuit that, if successful, could invalidate all of the actions since his appointment. such legal wrangling, as well as regulatory actions creates uncertainty and that may restrict credit as financial institutions raise for full implementation of dodd-frank. we may disagree on policy but he has a strong reputation. the appointment and the process of appointment raises concern

outside of that. testimony is not to alleviate much of the concern about uncertainty as he and the bureau have been vague and continue to be a vague about the definition of "abusive practices" by market participants. since he last met, we have permed -- proposed increasing the regulatory burning -- regulatory burden without a thorough and robust cost-benefit analysis. the consideration of the qualified mortgage rule has been met with dismay from lenders and experts who believe the rule could make consumer borrowing more expensive. that is a great concern. many also believe that the rule

could make a harder for consumers to prepare mortgage options and reduce consumer choice. that is a major concern as well. i would urge mr. cordray to consider these consequences as the housing market is beginning to see daylight. the finalized regulate transfers from consumers in the united states has already resulted in a reduction of services for consumers. the state bank of texas has stopped offering the service and estimates that 3000-four thousand other community banks will accept the agreement and transfer business -- exit the transfer business because of the rule. the bureau should join other regulators that have taken steps to improve their cost-benefit analysis. we have undertaken efforts to

implement cost-benefit analysis of the likely economic consequences of new regulations.

the gentleman is recognized. mr. issa: thank you, mr. speaker. h.r. 459, the federal reserve transparency act, directs the g.a.o. to conduct a full audit of the federal reserve. the dodd-frank legislation mandated the g.a.o. audit of the fed, but that audit issued by the government accountability office in july of 2011, focused solely on the issues concerning emergency credit facility. g.a.o. remains restricted under current law from conducting a broader audit of the fed that includes, for instance, a review of the fed's monetary policy operations and its agreements with foreign governments and central banks. the bill remedies this statutory permitting g.a.o. -- permitting g.a.o. the investigative arm of congress

to conduct a nonpartisan audit that will review all of these transactions. the findings of the audit are to be reported to congress. in particular, it is appropriate that we consider this legislation at this time. while congress should not manage or micromanage details of monetary policy, it needs to be able to conduct oversight of the fed. the fed was created by congress to be the central bank, independent of the influence of the u.s. treasury. it has never and was never intended to in fact be independent of congress or independent of the american people. in recent years the fed's extraordinary interventions into the economy's fiscal market has led some to call into question its independence. we do not ask for an audit for that reason. we ask for an audit because the american people ultimately must be able to hold the fed accountable and to do so they

must know at least in retrospect what the fed has done over these many years that it has been without an audit. that is why i support h.r. 459, a bipartisan bill with mine and 273 other co-sponsors. i urge my colleagues to support it and i reserve the balance of my time. the speaker pro tempore: the gentleman reserves the balance of his time. members are reminded not to traffic the well while another member is under recognition. the gentleman from maryland. mr. cummings: mr. speaker, i yield to the gentleman from maryland, mr. hoyer, two minutes. mr. hoyer: i thank the gentleman for yielding. the speaker pro tempore: the gentleman is recognized for two minutes. mr. hoyer: mr. speaker, when the sponsor of the bill talk about auditing the federal reserve, they don't mean a traditional audit. an outside independent accounting firm already audits the federal reserve's annual statements and g.a.o. is already empowered to review the annual statements and a broad range of its functions.

in fact, the wall street reform legislation passed last congress, there is transparency and accountability when it comes to the federal reserve's finances and operations. however, this bill would instead jeopardize the fed's independence by subjecting its decisions on interest rates and monetary policy to g.a.o. audit. the fed, like every other major central bank in the world, is independent, and congress has rightly insulated the fed from short-term political pressures. i agree with chairman bernanke that congressional review of the fed's monetary policy decisions would be a, quote, nightmarish scenario, especially judging the track record of intervening in the courts and other areas. we don't have to look further than the congress unnecessarily

taking the country to the brink of default last summer in a display of politics. all of us, mr. speaker, want transparency. all of us here want to make sure that the federal reserve is working to carry out the economic goals of the american people, which are maximum employment and price stability, but that's not what this bill is about. this bill increases the likelihood that the fed will make decisions based on political rather than economic considerations, and that is not a recipe for sound monetary policy. i urge my colleagues to defeat this bill and preserve the independence of the fed so it can keep our currency stable and cultivate the best conditions for our economy to grow and create jobs. unfortunately, mr. speaker, we in congress have shown too frequently our inability in a political environment to make tough choices. that failure has led us in part to where we are today. i urge my colleagues to defeat this unwarranted, unjustified

and dangerous legislation. and i yield back the balance of my time. the speaker pro tempore: the gentleman from california. mr. issa: mr. speaker, it's now my honor to yield time to the author of this bill, the gentleman from texas, the man who understands that not knowing should never be an answer, mr. paul. the speaker pro tempore: the gentleman from texas is recognized. mr. issa: two minutes. the speaker pro tempore: for two minutes. mr. paul: i thank the gentleman for yielding. i rise obviously in strong support of this legislation. i don't know how anybody could be against transparency and they want secrecy, especially when the secrecy is to protect individuals who deal in trillions of dollars, much bigger than what the congress does, and these trillions of dollars bail out all the wealthy , rich people, the banks and the big corporations, international, overseas banks, bailing out europe, dealing with central banks around europe, around europe, and different places. and so say that we should have secrecy and say that it's political to have transparency,

well, it's very political when you have a federal reserve that can bail out one company and not another company. that's pretty political. i know when people talk about independence and having this privacy of the central bank, it means they want secrecy and secrecy is not good. we should have privacy for the individual, but we should have openness of government all the time. and we drifted a long way from that. the billie essentially removes the -- the bill essentially removes the prohibition against a full audit. to audit we should know what kind of transactions are we should know about the deals that they made -- are. we should know about the deals they made when they were fixing the price of libor. these are the kind of things that were going on for years and we have no access to. so congress has this responsibility. we are reneging on our responsibility, we have the responsibility and we have not done it. so it is up to us to reassert

ourselves. the constitution's very clear who has the responsibility. but the law conflicts with the constitution. the law comes along and says the congress can't do it. well, you can't change the constitution, prohibit the congress from finding out what's going on by writing a law. and this is what has happened. so it is time that we repeal this prohibition against a full audit of the federal reserve. we deserve it. the american people deserve it. the american people know about it and understand it and that's what they're asking for. they're sick and tired of what happened in the bailo and where the wealthy got bailed out and the poor lost their jobs and they lost their homes. and i yield back. the speaker pro tempore: the gentleman from maryland. mr. cummings: i yield four minutes to the distinguished ranking member of the financial services committee, mr. frank. the speaker pro tempore: the gentleman from massachusetts is recognized for four minutes. mr. frank: thank you, mr. speaker. i think this is a bad idea and i'm somewhat confused. by the way, we will be debating

tomorrow a bill which restricts rule making and exempts the federal reserve as i read it. so we're kind of on again, off again about the federal reserve. it seems to me what we're talking about is taking some thick punches at the federal reserve but not doing anything serious. my republican colleagues brought up a reconciliation bill that was going to subject the consumer bureau to appropriations. so i offered an amendment to subject the federal reserve to appropriations. that was voted down. so we're not going to restrict their rulemaking, we're not going to subject them to appropriations, even though that's being done elsewhere, we're going to audit them. which is a way to look tough without reallyeing tough. does the gentleman want me to yield? mr. paul: i would. mr. frank: i yield. mr. issa: i thank the gentleman. would you suggest that we should do both of those -- mr. frank: no. i will take back my time and say we should do none of them. i have a consistent position. i don't think we should do any of them. what i'm saying is people who get up there and beat their chest about how tough they are and they're not afraid of the

federal reserve, but it exempt it from the great rule making bill and subject the consumer bureau, that terrible threat to the well-being of americans through the appropriations process, but let the federal reserve, which spends about $1 -- 150 times as much go free, i am inclined to doubt their seriousness. not their purity. that would be a violation of the rules. but their seriousness. this is a way to shake your fist at that big bad fed and it's not a good way. we hear a lot about uncertainty. remember, the federal reserve is now subject to a complete openness about all of its transactions with private companies. we did that last year. the gentleman from texas had a major role in that. when the federal reserve deals with any other institution we know what it does. we don't know it necessarily the same day. there were predictions about what terrible things were going to happen when the federal reserve did this and that and they haven't come true. maybe they will someday. but we will know it. this makes this exception, it says that we will audit the

decisions about monetary policy. it says that members who vote on what the interest rates should be will now be audited. they will be subject to being quized about why they did that. now, i will tell my democrat friends, i understand that one part of this problem is the objection on the part of the republican party to the fact that our federal reserve, unusual among central banks, has a dual mandate. they are charged under a statute to be concerned about inflation and about unemployment. now, the republicans have an agenda that, they keep it on low keep keystone x.l. until next year, but they would -- keep it on low key until next year, but they would like to strip that part of the mandate. they would like the federal reserve to be only involved with inflation. they don't like that they deal with unemployment. this is a way, if it ever were to become law, no one thinks it is. look how tough we are, we're going to wave our fist at the fed. but it would be way to kind of

put pressure on members of the open market committee and see what -- are you worried about unemployment when you did this? that's the audit. in this has nothing to do with how they spend their money. it has nothing to do with whom they contract. that's what people usually think about audit. it has nothing to do with the way in which -- whether they're efficient or not. it's an ideological agenda by a group of people who didn't like what the federal reserve was doing, under by the way george bush, there was reference to the bailouts which of course were under the bush administration. one of the things we did in the bill two years ago, all my republican colleagues voted against the bill, was to take away from the federal reserve the power they used under president bush to give -- lend $85 billion to a.i.g. we rescinded that. i don't think mr. bernanke, a bush appointee, was doing the wrong thing necessarily. but we took back that power. so this is probably a show because on the two serious efforts to curtail the fed's

powers, my republican colleagues aren't there. but secondly, and as i said, i'm consistent, i don't think we should do any of these things. i think what we did with regard to openness makes sense. i'm not pretending to be tough when i'm not. the speaker pro tempore: the gentleman is recognized for an additional minute. mr. frank: but what it will do is destabilize. we have worries about expectations. there is a fear that we will be too inflationary or that we won't grow enough. people on wall street are not as sophisticated as some people think. they're not even sophisticated about their own business, as we know. they will read this and take it more seriously than the members here do. and it will destabilize some of the financial system. they will see it as political interference, not with the contracting procedures, not with the budget, not with how many cards they have, but with how they decide on interest rates. and the perception that the congress is going to politicize the way in which interest rates are set will in itself have a

destabilizing effect. and as i said, nobody here thinks this is ever going to become law. but there is this fear on the part of others who don't know that that will translate into precisely the kind of uncertainty, precisely the kind of unsettling on investment that my republican colleagues pretend to fear and it will also send them the message, stop worrying about unemployment. the speaker pro tempore: the gentleman's time has expired. the gentleman from california. mr. issa: as i introduce my good friend and leader on this issue, mr. chaffetz, i might note that when the word republican and democrat are used in this hall, hopefully when there's 45 democratic members on this bill as co-sponsors, we'd recognize this is a bipartisan bill. i now yield two minutes to the gentleman from utah. the speaker pro tempore: the gentleman from utah is recognized for two minutes. mr. chaffetz: thank you. and i thank the chairman. i also want to appreciate and congratulate dr. ron paul for his tireless pursuit of this openness and transparency. without his leadership we wouldn't be at this point today.

and i applaud him and thank him for that. some would say that the fed is already audited but there are some key points where it is not. these include transactions with foreign central banks, discussion and actions on monetary policy, and transactions made under the direction of the federal open market committee. if we're truly about openness and transparency in this nation, which dishes -- distinguishes above and beyond so many others, we deserve and need to know this information. we need also understand the imperative that is before us because the freshman reserve balance sheet has exploded in recent years. since 2008 it has literally tripled. gone from $908 billion on its balance sheet to over $2.8 trillion. nearly a 33% annualized increase since january of 2008. the federal reserve ownership of treasuries has also increased substantially in recent years. having more than doubled from january of 2008 to january of 2012. where it went from $741 billion to $1.66 trillion.

let's understand also that in fiscal year 2011 the federal reserve purchased 76% of new treasuries. certainly this distribute american people and this congress deserves more openness, transparency and at the very least an audit. i encourage my colleagues on both sides of the aisle to support this commonsense piece of legislation and again congratulate dr. paul on continued hope for his pursuit of this issue. i yield back. the speaker pro tempore: the gentleman from maryland. mr. cummings: i yield mrs. maloney two minutes. the speaker pro tempore: the gentlelady from new york is recognized for two minutes. mrs. maloney: this is an absolute terrible idea. although i am in total agreement with mr. paul that transparency is a virtue, i also believe that the federal reserve must be free of any political influence. and i'm afraid that this bill opens the door for precisely that to happen. and i don't believe that there's any one -- anyone in this chamber that thinks that what the process needs is more politics. make no mistake, i agrie degree

that maximum transparency is necessary and desirable and that is precisely why we included numerous transparency requirements in the financial reform bill as well as numerous audit requirements. we authorized the g.a.o. to audit the fed's emergency lending facility. we authorized the g.a.o. to ought audit any special facility created within the fed. and we required the fed to issue an assessment two years after institutions were granted access to the fed's discount window. we crafted those measures and more in a way that ensures transparency, but still preserves the independence of the federal reserve in its decision making process, in the critical area of monetary policy. but this bill, as it now stands, would provide information without a proper context. and that could have unintended consequences and have totally unwarranted effects on consumer confidence in our financial institutions. if the individual numbers of the open markets committee know that

each one of their decisions are subject to potential political pressure, it would significantly alter that decision making process. an open door to the federal open markets committee would invite political pressures and having decisions that are driven by politician and polling data is not -- politics and polling data is not the path to sound monetary policy. decisions about monetary policy should never be based on the raw political needs of the moment but instead should always be based strictly on objective economic contributions and guided by the twin mandates of full employment. the unintended consequences of this bill would be to open the federal reserve to political influence and that would have a negative impact on the fed's independence and its ability to produce sound economic policy. i urge a strong bipartisan no vote. i yield back. the speaker pro tempore: the

gentleman from california. mr. issa: it's now my honor to yield one minute to the gentleman from texas, mr. farenthold. the speaker pro tempore: the gentleman from texas is recognized for one minute. mr. farenthold: thank you, mr. chairman. you know, the constitution grants us the power to coin money and regulate the value thereof and we've delegated this to the fed. unfortunately we've ta tied our hands behind our back with respect to seeing what they're doing and it's our duty to conduct oversight. a moment ago mr. frank said the audit was just fist pounding and chest pounding. i disagree. it's the first step, it's us doing our homework to determine what needs to be done to reform the fed. chairman bernanke said this bill would be a nightmare scenario of political meddling in monetary affairs. i disagree. i think the current situation is a nightmare scenario in unaccountable government. as justice bran dies said, sunshine is always the best disinfectant. as a member of the oversight and government reform committee, we demand transparency from agencies like the g.s.a., the t.s.a., and other fed agencies.

i join my friend and neighbor in congress, dr. paul, in demanding for the american people that sunshine be shined into the fed and this audit be conducted. i urge my colleagues to support this bill because the american people have a right to know. the speaker pro tempore: the gentleman from maryland. mr. cummings: i grant the gentleman from massachusetts, one minute, mr. frank. the speaker pro tempore: the gentleman from massachusetts is recognized for one minute. mr. frank: to illustrate the misconceptions about this bill, let's refer to what the gentleman from utah, mr. chaffetz, had to say. he said 76% of the purchases of this and that -- well, if this was so nontransparent, i don't know how he knows that. he doesn't have a subpoena. but the fact is, yes, he knows that, because of the transparency we built in. but the more important, the details, the specifics of every one of those transactions is already public. this isn't about those transactions and with about whom were done and under what time period. it's about the motives of the people setting monetary policy. let me address the

constitution. yes, it is true that the constitution gives us the power to do this. the constitution gives us a lot of power. it gives us power to declare war on canada. it declares -- gives us the power to do a lot of things. wise people pick and choose which powers they use, but this is not about getting more information about their transactions or that is out there. this is an effort to give politicses, a wonderful group of people of which i am one, more direct involvement on the setting of interest rates than is good for the economy. the speaker pro tempore: the gentleman from california. mr. issa: it's now my honor to recognize for one minute the gentleman from michigan, mr. amash. the speaker pro tempore: the gentleman from michigan is recognized for one minute. mr. amash: i want to thank chairman issa and congratulate dr. ron paul for his tireless work on this issue for many decades. mr. speaker, what is the federal reserve? i think even many members of this body couldn't answer that question, and yet congress has

delegated its constitutional authority to this committee of bankers and presidential appointees. congress has given so much power while knowing so little. the central bank, we trust the federal reserve for managing inflation. that means the fed can change the value of americans' life savings, their mortgages. lately the fed has taken on the role of, quote, lender of last resort. it has promised billions of dollars to the country's largest financial institutions. when investors wouldn't buy mortgages, the fed did. when creditors became worry of congress' spending bin g, the fed stepped in. -- binge, the fed stepped it. the government's accountants understandably were outraged saying they couldn't, quote, satisfactorily audit the federal reserve system without the authority of examining the fed's largest assets. congress should be weary of all

types of central planning. we should be especially vigilant against unaccountable groups that profoundly affect americans' lives and liberty. pass this bill and let's audit the fed. i yield back. the speaker pro tempore: the gentleman from mudd. mr. cummings: i yield the gentleman from north carolina, mr. watt, two minutes. the speaker pro tempore: the gentleman from north carolina is recognized for two minutes. mr. watt: thank you, mr. chairman, and let me say, first, that this bill is not about sunshine. it's not about transparency. it is about dissatisfaction that some individuals have with the man indicate that congress has given -- mandate that congress has given to the federal reserve. the gentleman who just spoke is absolutely right. they're supposed to deal with inflation. that's what we told them to do in their mandate. they're supposed to deal with unemployment. that's what we told them to do in the mandate we gave them. and some people over there are dissatisfied with the fact that

they don't want them to deal with unemployment. they don't want them to try to adjust and make changes that will be beneficial to our economy. and if they don't want that, they ought to just introduce a bill that repeals the mandate that we gave to them. don't come and say we're talking about sunshine and transparency. every time i turn on the television now i hear the federal reserve, chairman bernanke, and members of the federal reserve talking about how the economy is going. that is not lack of sunshine and lack of information. we -- i thought we had dealt with this when i was the ranking member of the subcommittee and mr. paul was the chairman -- or i was the chairman and he was the ranking

member. mr. paul's problem is he doesn't like the federal reserve. he's in favor of doing away with the federal reserve. and if -- and that's an honest position, but don't come in and try to cloak it in the guise of this agency is not transparent or it lacks sunshine. if you don't like the mandate that they have, then have the guts to stand up and introduce a bill that says we're doing away with the federal reserve and -- mr. cummings: i yield the gentleman one minute. the speaker pro tempore: the gentleman is recognized for one minute. mr. watt: if you think we're in trouble now, you get the politics and the congress involved in transactions with foreign governments and decisions about how we get ourselves out of this unemployment situation. if we have some answers about

how to get out of unemployment, i would assume we would come forward with them and nobody on this floor, this congress has done nothing to take out the ploun -- unemployment bill, so i'm glad we have the federal reserve over there at least trying to figuring out how to make some adjustments in our economy that will deal with unemployment. and the last thing i want is for this congress to be second guessing or an auditor that is not elected by anybody to be second guessing the decisions of the people who are on the federal reserve. an auditor might be a good accountant. he can count, but i want somebody on the federal reserve and hopefully it would be nice to have some people in congress who can make some decisions about how to deal with unemployment. the speaker pro tempore: the gentleman's time has expired. the gentleman from california.

mr. issa: mr. speaker, the rules of the house prohibits going after someone's motivation and i'm very concerned that a bill that in a substantially similar form was placed into dodd-frank by then chairman barney frank is now being characterized as somehow ill-intended and mischievous activity by the proponents. i would trust that's not the intent of the speakers on behalf of that side of the aisle about this bipartisan bill that is virtually identical to the language that barney frank put into dodd-frank. i'd yield. mr. watt: i just want to be clear that mr. frank and i voted against the bill that you are talking about. so don't try to make it sound like me and mr. frank's bill. we voted against the bill. this is ron paul's bill, and we thought it was a terrible idea then and we -- mr. issa: reclaiming my time.

mr. watt: thinks it's terrible now. mr. issa: i yield 15 seconds to the gentleman from texas. mr. paul: did you vote against dodd-frank? because it was in dodd-frank. it wasn't a separate bill. maybe on a separate vote you might have but it was in dodd-frank. mr. issa: i now recognize the gentleman from montana for one minute. the speaker pro tempore: the gentleman from montana is recognized for one minute. mr. rehberg: tomorrow the house of representatives will vote to pull back the secretive curtain the federal reserve. the american people have a right to know. it's an important step in openness in government transparency that's long overdue. just a few years ago the senate rejected an effort to add the strong audit language to the dodd-frank bill, but times are changing. our economy struggles and job creation lags. it's more important than ever to look under the hood of the federal reserve. we need to find out exactly what they are doing and why. that way we can determine if

the fed is actually hurting our economy and discouraging job growth. in a drauks, no government body -- democracy, in government body should be allowed to hide behind a curtain of secrecy. that's why i stand behind this legislation. thank you, i yield back. the speaker pro tempore: pursuant to the chair's announcement of earlier today, the chair will observe a moment of silent. will all present please rise in onans of a moment of silence. -- in observance of a moment of silence. the speaker pro tempore: without objection, debate

continues on h.r. 459. the gentleman from maryland. mr. cummings: mr. speaker, i yield the gentleman from massachusetts 30 seconds. the speaker pro tempore: the gentleman from massachusetts is recognized for 30 seconds. mr. frank: mr. speaker, i'm glad that the committee on government oversight is not the one that started. in fact, there was a motion to include language like this offered to the financial reform bill. i voted no, as did mr. watt. it wasn't included in the bill. it's true i voted for the bill. of course, the gentleman from texas voted against the bill. if you vote for the whole bill as taken on how you feel he was against it. when it went to conference it was not in the senate bill which was the text of the conference so we it did not come up and -- so it did not come up and no republican conferee offered it as an amendment. that is in the conference that language which i and the gentleman from north carolina voted against was not offered by any member of the conference, democrat or republican. the speaker pro tempore: the gentleman's time has expired. the gentleman from california.

mr. issa: history records that democrats broadly voted for it when it was voted out of this body. nothing more needs to be said. with that i recognize the gentlelady from tennessee, mrs. blackburn, for one minute. the speaker pro tempore: the gentlelady from tennessee is recognized for one minute. mrs. blackburn: thank you, mr. chairman, and i thank the gentleman from california for the time, and i want to commend the gentleman from texas, mr. paul, for his excellent work on this issue. recently i had a constituent say to me in a town hall meeting they thought it was time for congress to start putting some mandates on the federal government. they're tired of government mandates on them. why don't we mandate, why don't we hold them accountable? this is a piece of legislation that does exactly that. it requires the g.a.o. to conduct a full audit of the board of governors of the federal reserve system and of the federal reserve bank by the comptroller general before the

end of the year. that is significant. a timeline to do a job, to be held accountable to the people of this great nation for how they spend their time, their money, the decisions they make that affect us. it is imperative that we get this economy back on track. the actions that we will vote on today are part of that. having a federal reserve that is accountable, accountable to our constituents, accountable to the people of this nation. i commend the gentleman for a move toward transparency and accountability. i yield back. the speaker pro tempore: the gentleman from maryland. mr. cummings: mr. speaker, may i inquire as to how much time we have left? the speaker pro tempore: the gentleman from maryland has 6 1/2 minutes remaining. the gentleman from california has 9 1/4 minutes remaining. mr. cummings: mr. speaker, i yield myself such time as i may consume. the speaker pro tempore: the gentleman is recognized. mr. cummings: mr. speaker, i rise today in opposition to h.r. 459 which passed out of

the oversight committee without even a single hearing and without testimony from any federal reserve officials. let me be clear, the government accountability office has had the authority to audit the federal reserve's books for three decades. in 2010, the dodd-frank act expanded the types of audits g.a.o. conducts of the federal reserve as well as the data the fed must disclose to the dub. dodd-frank required g.a.o. to audit the emergency financial assistance provided during the financial crisis. the act also opens discount window operations and open market operations to audit so g.a.o. can assess the operational integrity, collateral policies, fairness, use of third-party contractors. and dodd-frank requires the federal reserve to release information regarding borrowers and counterparties participating in discount lending programs and open market operations. mr. speaker, as a conferee who helped craft the final

dodd-frank legislation, i supported all of these provisions. i believe other areas of the federal reserve's operations are also right for audit. during the committee's consideration of this legislation, i offered an amendment that would require g.a.o. to perform an audit of the independent foreclosure re views. 14 mortgage servicers have been required to establish a process under which borrowers can request an independent review of their loan histories. but at the end of may, only 200,000 out of 4.4 million borrowers have requested an independent review of their foreclosure cases. we need to understand whether the design of the program is limited to a number of borrowers who sought reviews of their cases. further, it is unclear how the types and amounts of remediation are being determined. this is precisely the type of issue that should be reviewed by the g.a.o.

the public has the right and the congress has a responsibility to know and understand the transactions and enforcement transactions undertake bin the nation's central bank. however when congress established the fed in 1913 it understood that independence from political interference was critical to the bank's ability to fulfill its monetary policy responsibilities. the dodd-frank act was carefully crafted to expand transparency while preserving the protections that ensured the independence of the federal reserve's internal deliberations on monetary policy matters. the board of governors of the federal reserve must be able to pursue the policies it considers most response to have our nation's current economic conditions and most likely to fulfill its dual mandate of promoting maximum employment and stable prices. we should not allow g.a.o. examinations to be the backdoor through which politics intrudes on monetary policy. which is what this legislation will allow. opening the federal reserve's

internal policy deliberations to g.a.o. review would influence how such deliberations are conducted and potentially the policies that are chosen best -- thus degrading the fed's independence. last week chairman of the federal reserve, mr. bernanke, described the potential impact of this bill to the financial services committee and said, and i quote, the nightmare scenario i have is one in which some future fed chairman would decide to raise the federal funds rate by 25 basis points and somebody would say, i don't like that decision, i want the g.a.o. to go in and get all the resorts -- records, get all the transcripts, get all the preparetory materials and give us an independent opinion whether or not that was the right decision. i share chairman bernanke's concern. for that reason during the markup of this legislation in the oversight committee, i offered an amendment that would have retained the protections for the board of governors in

term of monetary policy deliberations to ensure that the audit required by this legislation did not intrude on the federal reserve's independence. i continue to believe this provision is needed to ensure this bill does not inhibit the ability of the federal reserve to implement monetary policies to strengthen our nation's economy as it has done repeatedly throughout the recent financial cry sills. the speaker pro tempore: -- crisis. the speaker pro tempore: the gentleman reserve his time? mr. cummings: yes. the speaker pro tempore: the gentleman reserves. the gentleman from california. mr. issa: can i inquire of the time remaining? the speaker pro tempore: the gentleman from california has 91 fourts minutes remain -- -- 9 1/4 minute remaining. mr. issa: thank you. i now yield to the gentlelady from kansas. the speaker pro tempore: the gentlelady from kansas is recognized for one minute. ms. jenkins: i thank the gentleman for yielding and i thank dr. paul for his leadership on this very important issue. mr. speaker, the federal reserve lent out $16 trillion during the fiscal crisis. that's larger than the entire u.s. economy or worse our

federal debt. trillions of taxpayer dollars and we have very little understanding of where it went. congress holds the purse. but we have no oversight over how the fed manages the funds. this is why i've co-sponsored a bipartisan effort to audit the fed in full. it's our responsibility. current monetary policy audits of the fed are insufficient. most fed operations consist of transactions with foreign central banks and yet they are exempt from review. when corruption is suspected, a common refrain is, follow the money. with the historic sovereign debt crisis brewing in europe, we must look closely at our own balance sheet. we must follow the money. as a c.p.a. i know we need more transparency in washington. it should start with the federal reserve. i yield back. the speaker pro tempore: the gentleman from maryland.

mr. cummings: i yield to mr. kucinich one minute. the speaker pro tempore: the gentleman from ohio is recognized for one minute. mr. kucinich: i ask unanimous consent to include in the record of this debate an article about the fed's policy model sacrifices its maximum employment mandate and targets 5% to 6% unemployment. the speaker pro tempore: without objection. mr. kucinich: i ask unanimous consent to include in the record of this debate an article from bloomberg news that talks about how secret fed loans gave banks billions that were undisclosed to congress. the speaker pro tempore: without objection. mr. kucinich: this is all about disclosure and accountability. you know, the fed's not some kind of hocus pocus black box operation. the fed essentially supplants the constitutional mandate in article 1, section 8, that belongs to the congress of the united states. let's look at some recent history here. 2008, subprime meltdown, collateralized debt obligation, go back for mortgage-backed securities. people losing their homes. the fed looked the other way.

and we're saying, oh, don't go into the fed, it would be political. yes, it's political. we have unemployment because of politics. we have people losing their homes because of politics. we have banks getting uncalculated amounts of money from the federal reserve and we don't even know about it. meanwhile people can't get a loan to keep their home or keep their business. audit the fed, you bet we should audit the fed. it's time that congress stood for its constitutional role. article 1, section 8, power to create money. it's time we stood up for america's 99%. it's time that we stood up to the federal reserve that right now acts like it's some kind of high exalted priesthood, unaccountable in a democracy. let's change that by voting for the paul bill. thank you. the speaker pro tempore: the gentleman's time has expired. the gentleman from california. mr. issa: at this time i would yield one minute to the gentlelady from wyoming, mrs. lummis. the speaker pro tempore: the gentlelady from wyoming is recognized for one minute. mrs. lummis: thank you, mr. speaker. you know, before the financial crisis the fed's lending to the

financial system was minimal and monetary policy was limited. but since 2008 they've tripled their balance sheet and transacted nearly $16 trillion in loans. clearly congress has delegated monetary policy to the fed and i for one am not advocating that we abolish the fed. but congress retains oversight responsibility and congress should insist on an accurate accounting of the fed so members of congress can better understand monetary policy. our colleague ron paul was instrumental in getting an audit of the fed's emergency activities during the financial crisis. but restrictions remain in place on examining monetary policy actions such as quantitative easing and assisting failing banks in europe. when the fed's cumulative lending hits the size and scope to be greater than the entire g.d.p. of the united states,

it's past time for congress to insist on transparency. mr. speaker, i yield back the balance of my time. the speaker pro tempore: does the gentleman from maryland continue to reserve? mr. cummings: we continue to reserve. the speaker pro tempore: the gentleman reserves. the gentleman from california. mr. issa: i yield myself two minutes. the speaker pro tempore: the gentleman is recognized. mr. issa: mr. speaker, it appears as though we agree on certain things. we agree that some transparency is required. we certainly agree on a bipartisan basis that what the g.a.o. did under dodd-frank at a minimum was a good thing. i think there's no question, my colleague who was here earlier, mr. frank, certainly would agree to the numbers. the expansion of the fed in that period that mrs. lummis talked about in 2008 to now. i think we would all agree the federal reserve is the people's bank. it is broadly owned by 316 or

320 million americans. i served on the board of a public company, one that i founded. i understand that if you have more than 500 stockholders, you have an obligation to considerable disclosure. although the fed is audited to see whether basically some numbers are correct or not on a limited basis, the truth is the federal reserve is not open and transparent, not even years after they make decisions. i think the american people have a piercing question right now, one that is not the question that dr. paul was asking when he first wanted to audit the fed. the question is, will we be like greece? will we be like germany? will we be like the trauma that's sweeping over the european union? do we in fact know the true numbers? do we know the extent of the leverage and the policies and the accuracy and the knowledge

of the federal reserve? i think calmly we have to ask that question. do we know what we need to know or are we willing to not know in hopes that we won't be political because we don't know? i've been in congress for 12 full years at the end of this term. and i've learned one thing. congress has a tendency to do two things well. nothing at all and overreact. i trust today will be a day in which we're in between. i yield myself an additional minute. the speaker pro tempore: the gentleman is recognized. mr. issa: we would do something so that we would know more a year from now than we know today. we would not overreact, we would not want to stifle what the fed has done historically without an awful lot more study. changes to an entity like the central bank should be done thoughtfully and over time. my friend, dr. paul, would like

to do more than this bill does. but this minimal effort offered on a bipartisan basis is offered today because we believe the american people have a right to know, an interest to know and a need to know. with that i reserve the balance of my time. the speaker pro tempore: the gentleman reserves the balance of his time. the gentleman from maryland. mr. cummings: i yield the gentleman one minute. mr. cuellar: mr. speaker, i rise in support of h.r. 4 -- mr. clay: mr. speaker, i rise in support of h.r. 45. it has the comptroller general conduct an audit of the federal reserve. since 1982 the g.a.o. has had authority to audit the federal reserve board and banks subject to exception for monetary policy related decisions and activities. in 2009 congress provided authority for the g.a.o. to audit actions by the fed under section 1303 of the federal reserve act, to lend to any

single and specific partnership or corporation notwithstanding the generally applicable monetary policy related exceptions. in 2010 the dodd-frank wall street reform act added new audit authorities. in addition g.a.o. has conducted a number of other reviews of federal reserve activitys but we need a full audit and i urge my colleagues to vote for the bill. i yield back. the speaker pro tempore: the gentleman's time has expired. the gentleman from california. mr. issa: mr. speaker, could i inquire how much time is available? the speaker pro tempore: the gentleman from california has 4 1/4 minutes remaining. the gentleman from maryland has all of his time -- all of his time has expired. mr. issa: with that i'll close. mr. speaker, i won't use all of our time. slightly different opinion than the ranking members. i believe regular order has been

followed on this bill and followed and then some. this is something that dr. paul has worked on on a bipartisan basis with republican presidents and democratic presidents, with republican congresses and democratic congresses. the support for this, as you saw here today, goes to republicans and democrats, progressives, conservatives, blue dogs. the american people want to know , i don't believe the american people are afraid to know. of course the american people would not be comfortable with interference with the fed, with micromanaging policy decisions, with tearing down the institution. but in fact i think that the 9/11 of the financial market, if you will, the meltdown in 2008 and 2009, $1 trillion nearly in tarp money and countless trillions in expansion of the balance sheet, have taught us one thing.

what we don't know can hurt us. now before 9/11 of the financial market, before the meltdown, before the lamen brothers and bear stearns evaporated, we would have thought, well, there's some very smart people on wall street and we'd have been right. but smart people can be wrong. we put very good people on the federal reserve board. we choose very good chairmen. chairman bernanke was a choice of republicans and democrats alike. but ultimately looking over the shoulder by congress, by my committee, by the financial services committee just to ask the question, are those numbers undeniable truths brought down on tabulates or are they in fact open to second guessing after the fact? questioning of whether or not a model works, or whether there is just a small but meaningful opportunity for tenses of

trillions of dollars to fall on the backs of the american people if they got it wrong. that's the question the american people asked. and after 2008 it's a question congress must act -- ask. when chairman franks voted for -- frank voted for ron paul's bill, perhaps he didn't want it but he voted for it as did countless democrats. ultimately it was reduced but not eliminated in conference. there was some recognition there needed to be audit. today what we're doing is asking to send to the senate a piece of legislation that more purely and clearly says, i believe the american people have a right to know. perhaps the senate will take up a slightly different version. perhaps it will be truly a one-time audit. perhapses it will be limited. but the american people need to hold us in the house and our counterparts in the senate responsible that we do know what we need to know and that we will

never again say we rely on other people to be so smart that we shouldn't look over their shoulder. that's not the america that i grew up in. it's not the clear and transparent america the american people are asking for and with that i urge passage of >> the house will vote on the federal reserve you'd bill on wednesday. live coverage of the house when members return for legislative business at noon eastern. i had to on "washington journal" -- congressman henry cuellar, and then republican scott garrett, a member of the house financial services committee talks about the fight over tax cuts and defense. and later, "washington journal's" spotlight on magazines features nick gillespie, editor-in-chief of

reason.com. he'll take your calls about the generation gap between the generations. "washington journal" is live starting at 7:00 a.m. eastern on c-span. >> the brookings institution hosts a discussion today on the presidential candidates' foreign policy agendas. a representative of the obama campaign and the romney campaign will be live at 2:00 p.m. eastern on c-span3. >> this weekend on "american history tv" -- >> let me begin to open up the discussion by asking this, what exactly is the nature of the clash between macarthur and truman? is this a clash over policy? is this a problem of personalities? >> from electronics tours in history, truman and macarthur,

this johns hopkins professor on the relationship that led a president to relieve a general at the height of the korean war, saturday night at 8:00 eastern and sunday, more from "the contenders," our series to look at key figures who ran for president and lost. this week, illinois governor adlai stevenson. he once said he had a bad case of hereditary politics. his grandfather was vice president under grove cleveland. his great-grandfather was first to suggest abraham lincoln as president, and he ran twice against eisenhower. "the contenders" at 7:30 p.m. eastern and pacific. american history tv this weekend on c-span3. >> president obama defended his foreign policy on monday. he wanted to end the iraq war responsibly and wind down the war in afghanistan from. reno, nevada, his remarks are 35 minutes.

>> it is now my honor to introduce someone who is no stranger to veteran to the v.f.w. stage. he was born in hawaii, raised with midwestern values, and educated at columbia and harvard. he served in his state senate for eight years before becoming u.s. senator from the prairie state of illinois in 2004. he would cosponsor numerous v.f.w.-supported legislation, like the post-9/11 g.i. bill and traumatic injury insurance supplement for our seriously wounded, iraq, and afghanistan warriors. he would attend the v.f.w. washington off his legislative conference reception and appear on this stage for two years in a row as a candidate for our nation's highest office. then he appeared before us again after he got the job in 2009 when he would exchange diplomatic notes with the russian president to revitalize

the u.s.-russia joint commission on p.o.w.-m.i.w.'s and would sign into law another priority, advanced appropriations for the department of veterans affairs. he said he wou take care of veterans, service members, and their families, and he has been true to his word. and mr. president, i would be definitely remiss not to add our profound appreciation for all of the superlative work the first lady and dr. jill biden do for troops, especially their families. thanks to you, mr. president and vice president biden, for these two extraordinary ladies. and now comrades and sisters, distinguished guests, please heartily welcome the 44th

president of the united states, barack obama! >> thank you! hello, v.f.w.! thank you so much. please, please, everybody have a seat. commander, thank you for your introduction and your service in vietnam and on behalf of america's veterans. i want to thank your executive director, bob wallace, your next command ir, who i look forward to working with, john hamilton, and to glen, and the entire ladies', ale are you, thank you for your patriotic service to america.

i stand before you as our hearts still ache over the tragedy in aurora, colorado. yesterday i was in aurora with families whose loss is hard to imagine. with the wounded who are fighting to recover, with a community and a military base in the midst of their grief. and they told me of the loved ones they lost. here today, it's fitting to recall those who wore our nation's uniforms. staff stgget jesse childress, an air force reservist, 29 years old, a cyberspecialist who loved sports, the kind of guy, said a friend, who would help anybody. petty officer first class john larimer, 27 years old, who like his father and grandfather before him, joined the navy and who is remembered as an outstanding shipmate.

rebecca wingo, 32 years old, a veteran of the air force, fluent in chinese, who served as a translator, a mother whose life will be an inspiration to her two little girls. and jon blum from reno, 26 years old, but a veteran of three navy tours whose family and friends will always know that, in that theater, he gave his own life to save another. these young patriots were willing to serve in far away lands, yet they were taken from us here at home. yesterday i conveyed to their families a message on behalf of all americans, we honorable oner your loved ones. we salute their service. and as you summon the strength to carry on and keep bright their legacy, we stand with you as one united american family.

veterans of foreign wars, in you i see the same shining values. the virtues that make america great. when our harbor was bombed and fascism was on the march, when the fighting raged in korea and vietnam, when our country was attacked on that clear september morning, when our forces were sent to iraq, you answered your country's call. because you know what americans must always remember. our nation only endures because there are patriots who protect it. in the crucible of battle, you are tested in ways the rest of us will never know.

you carry in your hearts the memory of the comrades you lost . for you understand we must honor our fallen heroes, not just on memorial day, but all days. and when an american goes missing or is taken prisoner, we must do everything in our power to bring them home. even after i took off the uniform, you never stopped serving. you took care of each other, fighting for the benefits and care you had earned. you've taken care of the generations that followed, including our newest veterans from iraq and afghanistan. on behalf of all our men and women in uniform, and on behalf of the american people, i want to thank you, vfw. thank you for your outstanding work.

of course, some among you -- our vietnam veterans -- didn't always receive that thanks, at least not on time. this past memorial day, i joined some of you at the wall to begin the 50th anniversary of the vietnam war. and it was another chance to say what should have been said all along: you did your duty, and you made us proud. and as this 50th anniversary continues, i'd ask all our vietnam vets to stand, or raise your hand, as we say: thank you and welcome home. and welcome home.